# **Exhibit 10.26**

# ** **

**AGREEMENT TO COMPENSATE GUARANTORS**

 

THISAGREEMENT is made and entered into effective this 28th day of February, 2005,by and between Great Plains Ethanol, LLC (the “Company”) and Robert Broin, JeffBroin, Todd Broin, Duane Sather, Fred Thurman, and Dennis Schrag (collectivelythe “Guarantors”).

 

RECITALS:

 

A.                                   The Company entered into a Natural GasDistribution Delivery Agreement dated September 2, 2002, with NorthWesternEnergy Corporation (“NEC”).

 

B.                                     In connection with the Natural Gas DistributionDelivery Agreement, Home Federal Bank issued an Irrevocable Standby Letter ofCredit dated February 28, 2003, in the amount of $1,600,000.00 (the “Letterof Credit”) in favor of NEC.

 

C.                                     In consideration for the Letter of Credit,the Company executed a Promissory Note dated February 28, 2003, in theamount of $1,600,000.00 in favor of Home Federal Bank (the “2003 Note”).

 

D.                                    The Letter of Credit was modified andrestated pursuant to a First Amended and Restated Irrevocable Standby Letter ofCredit dated May 28, 2003.

 

E.                                      The Letter of Credit was further modified andrestated pursuant to a Second Amended and Restated Irrevocable Standby Letterof Credit dated February 25, 2004, in the amount of $1,250,000.00.  In consideration for the Second Amended andRestated Letter of Credit, the Company entered into a Promissory NoteModification Agreement with Home Federal Bank dated February 25, 2004,reducing the maximum loan amount to $1,250,000.00 (the “2004 Note”).

 

F.                                      The Letter of Credit was further modified andrestated pursuant to a Third Amended and Restated Irrevocable Standby Letter ofCredit dated February 28, 2005, in the amount of $1,125,000.00.  In consideration for the Third Amended andRestated Irrevocable Standby Letter of Credit, the Company entered into aPromissory Note Modification Agreement with Home Federal Bank dated February 28,2005, reducing the maximum loan amount to $1,125,000.00 (the “2005 Note”).

 

G.                                     The Guarantors are each willing to personallyguarantee the 2005 Note in part.

 

H.                                    The Company wishes to provide certaincompensation to the Guarantors in

 

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considerationfor their agreement to enter into the guarantees.

 

NOW,THEREFORE, the parties agree as follows:

 

1.                                       In consideration for each Guarantor’sagreement to provide his personal guarantee to Home Federal Bank in connectionwith the 2005 Note in the amount set forth below, the Company agrees tocompensate each Guarantor in an amount equal to two percent (2%) per annum ofhis respective guarantee amount, so long as he continues to guarantee theLetter of Credit issued by Home Federal Bank. The amounts of the individual guarantees related to the 2005 Note are asfollows:

 
| Robert  Broin  |   | $ | 250,000.00 |   |
|----------------|--------|---|------------|--------|
| Jeff  Broin    |   | $ | 250,000.00 |   |
| Todd  Broin    |   | $ | 250,000.00 |   |
| Duane  Sather  |   | $ | 125,000.00 |   |
| Fred  Thurman  |   | $ | 125,000.00 |   |
| Dennis  Schrag |   | $ | 125,000.00 |   |

 

2.                                       Payment will be made by the Company to theGuarantors on or before March 31 of each year in which the guarantees areexecuted, renewed, replaced or extended.

 

3.                                       This Agreement constitutes the entireagreement among the parties with respect to compensation to be paid by theCompany to the Guarantors for their guarantees. This Agreement 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:                        |  /s/  Darrin Ihnen |   |   |
| Its: President        |                    |
|                       |                    |
|                       |                    |
| /s/  Robert Broin          |                    | /s/  Jeff Broin |   |
| Robert  Broin              | Jeff  Broin             |
|                       |                    |
|                       |                    |
| /s/  Todd Broin            |                    | /s/  Duane Sather |   |
| Todd  Broin                | Duane  Sather           |
|                            |                         |  |  |  |  |  |  |

 

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| /s/  Fred Thurman |           | /s/  Dennis Schrag |   |
|-------------------|----------------|--------------------|--------|
| Fred  Thurman     | Dennis  Schrag |

 

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