Exhibit
10.1


MASTER
LOAN AGREEMENT


 


THIS
MASTER LOAN AGREEMENT is entered into as of March 14, 2012 between CoBANK, ACB
("CoBank") and SOUTH DAKOTA SOYBEAN PROCESSORS, LLC, Volga, South Dakota (the "Company").


BACKGROUND


 


CoBank
and the Company are parties to a Master Loan Agreement dated May 3, 2010, as amended (the "Existing Agreement"). Pursuant
to the terms of the Existing Agreement, the parties entered into one or more Supplements thereto. CoBank and the Company now desire
to amend and restate the Existing Agreement and to apply such new agreement to the existing
Supplements, as well as any new Supplements that may be issued thereunder. For that
reason and for valuable consideration (the receipt and sufficiency of which are hereby
acknowledged), CoBank and the Company hereby agree that the Existing Agreement shall be amended and restated to read as
follows:


 


SECTION
1. Supplements. In the event the Company desires to borrow from CoBank and CoBank
is willing to lend to the Company, or in the event CoBank and the Company desire to consolidate any existing loans hereunder, the
parties will enter into a Supplement to this agreement (a "Supplement"). Each
Supplement will set forth the amount of the loan, the purpose of the loan, the interest rate or rate options
applicable to that loan, the repayment terms of the loan, and any other terms and conditions applicable to that particular loan.
Each loan will be governed by the terms and conditions contained in this agreement and in the Supplement relating to the
loan. As of the date hereof, the following Supplements are outstanding hereunder and shall
be governed by the terms and conditions hereof: (A) the Monitored Revolving Credit
Supplement dated November 10, 2011 and numbered RIB051S01O; (B) the Revolving Term Loan Supplement dated November 10, 2011 and
numbered RIB051T05I; and (C) the Revolving Credit Supplement (Letter of Credit) dated
November 10, 2011 and numbered RIB051T06F.


 


SECTION
2. Availability. Loans will be made available on any day on which CoBank and the Federal
Reserve Banks are open for business upon the telephonic or written request of the Company. Requests
for loans must be received no later than 12:00 Noon Company's local time on the date the loan is desired. Loans will be made available
by wire transfer of immediately available funds to such account or accounts as may be authorized by the Company. The Company
shall furnish to CoBank a duly completed and executed copy of a CoBank Delegation and Wire
and Electronic Transfer Authorization Form, and CoBank shall be entitled to rely on
(and shall incur no liability to the Company in acting on) any request or direction furnished in accordance with the terms
thereof.


 


SECTION
3. Repayment. The Company's obligation to repay each loan shall be evidenced by the
promissory note set forth in the Supplement relating to that loan or by such replacement note as CoBank
shall require. CoBank shall maintain a record of all loans, the interest accrued thereon, and all payments made with respect thereto,
and such record shall, absent proof of manifest error, be conclusive evidence of the
outstanding principal and interest on the loans. All payments shall be made by wire transfer
of immediately available funds, by check, or by automated clearing house or other similar cash handling processes as specified
by separate agreement between the Company and CoBank. Wire transfers shall be made to ABA No. 307088754 for advice to and credit
of CoBank (or to such other


account
as CoBank may direct by notice). The Company shall give CoBank telephonic notice no later than
12:00 Noon Company's local time of its intent to pay by wire and funds received after 3:00 p.m. Company's local time shall be credited
on the next business day. Checks shall be mailed to CoBank, Department 167, Denver,
Colorado 80291-0167 (or to such other place as CoBank may direct by notice). Credit for payment by check will not be given until
the later of: (A) the day on which CoBank receives immediately available funds; or
(B) the next business day after receipt of the check.


 






    	 



    	 	



    
 


 


SECTION
4. Capitalization. The Company agrees to acquire equity in CoBank in such amounts
and at such times as CoBank may from time to time require in accordance with its Bylaws and Capital Plan (as each may be amended
from time to time), except that the maximum amount of equity that the Company may
be required to purchase in connection with a loan may not exceed the maximum amount
permitted by the Bylaws at the time the Supplement relating to such loan is entered into or such loan is renewed or refinanced
by CoBank. The rights and obligations of the parties with respect to such equity and any patronage or other distributions made
by CoBank shall be governed by CoBank's Bylaws and Capital Plan (as each may be amended from time to time).


 


SECTION
5. Security. The Company's obligations under this agreement, all Supplements (whenever executed), and all instruments
and documents contemplated hereby or thereby, shall be secured by a statutory first lien on
all equity which the Company may now own or hereafter acquire in CoBank. In addition, the Company's obligations under each Supplement
(whenever executed) and this agreement shall be secured by a first lien (subject only
to exceptions approved in writing by CoBank) pursuant to all security agreements,
mortgages, and deeds of trust executed by the Company in favor of CoBank, whether now
existing or hereafter entered into. As additional security for those obligations: (A) the Company agrees to grant to CoBank, by
means of such instruments and documents as CoBank shall require a first priority lien
on such of its other assets, whether now existing or hereafter acquired, as CoBank may from time to time require; and (B) the Company
agrees to grant to CoBank, by means of such instruments and documents as CoBank shall require, a first priority lien on all realty
which the Company may from time to time acquire after the date hereof.


 


SECTION
6.Conditions Precedent.


 


(A)Conditions
to Initial Supplement. CoBank's obligation to extend credit under the initial
Supplement hereto is subject to the conditions precedent that CoBank receive, in form and content satisfactory to CoBank,
each of the following:


 


This
Agreement, Etc. A duly executed copy of this agreement and all instruments and documents contemplated hereby.


 


(B)Conditions
to Each Supplement. CoBank's obligation to extend credit under each Supplement, including the initial Supplement,
is subject to the conditions precedent that CoBank receive, in form and content satisfactory to CoBank, each of the following:


 


(1)Supplement.
A duly executed copy of the Supplement and all instruments and documents contemplated thereby.


 


(2)Evidence
of Authority. Such certified board resolutions, certificates of incumbency, and other
evidence that CoBank may require that the Supplement, all instruments and documents
executed in connection therewith, and, in the case of initial Supplement hereto, this agreement and
all instruments and documents executed in connection herewith, have been duly authorized and executed.


 


(3)Fees
and Other Charges. All fees and other charges provided for herein or in the Supplement.


 


(4)Evidence
of Perfection, Etc. Such evidence as CoBank may require that CoBank has a duly perfected
first priority lien on all security for the Company's obligations, and that the Company is in compliance with Section 8(D)
hereof.


 






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(C)
Conditions to Each Loan. CoBank's obligation under each Supplement to make any loan
to the Company thereunder is subject to the condition that no "Event of Default" (as defined in Section
11 hereof) or event which with the giving of notice and/or the passage of time would become an Event
of Default hereunder (a "Potential Default"), shall have occurred and be continuing.


 


SECTION
7.Representations and Warranties.


 


(A)This
Agreement. The Company represents and warrants to CoBank that as of the date of this agreement:


 


(1)                  
Compliance. The Company and, to the extent contemplated
hereunder, each "Subsidiary" (as defined below), is in compliance with all of the terms of this agreement, and no Event
of Default or Potential Default exists hereunder.


 


(2)                  
Subsidiaries. The Company has the following "Subsidiary(ies)"
(as defined below): Urethane Soy Systems Company. For purposes hereof, a "Subsidiary"
shall mean a corporation of which shares of stock having ordinary voting power to
elect a majority of the board of directors or other managers of such corporation are
owned, directly or indirectly, by the Company.


 


(B)Each
Supplement. The execution by the Company of each Supplement hereto shall

constitute a representation and warranty to CoBank that:


 


(1)                  
Applications. Each representation and warranty and
all information set forth in any application or other documents submitted in connection
with, or to induce CoBank to enter into, such Supplement, is correct in all material
respects as of the date of the Supplement.


 


(2)                  
Conflicting Agreements, Etc. This agreement, the Supplements, and all security
and other instruments and documents relating hereto and thereto (collectively, at any time, the "Loan
Documents"), do not conflict with, or require the consent of any party to, any other agreement to which
the Company is a party or by which it or its property may be bound or affected, and do not conflict with any provision of
the Company's bylaws, articles of incorporation, or other organizational documents.


 


(3)                  
Compliance. The Company and, to the extent contemplated
hereunder, each Subsidiary, is in compliance with all of the terms of the Loan Documents (including, without limitation, Section
8(A) of this agreement on eligibility to borrow from CoBank).


 


(4)                  
Binding Agreement. The Loan Documents create legal,
valid, and binding obligations of the Company which are enforceable in accordance with
their terms, except to the extent that enforcement may be limited by applicable bankruptcy,
insolvency, or similar laws affecting creditors' rights generally.


 


SECTION
8.Affirmative Covenants. Unless otherwise agreed to in writing by CoBank while this
agreement is in effect, the Company agrees to and with respect to Subsections 8(B) through 8(G) hereof, agrees to cause
each Subsidiary to:


 


(A)                
Eligibility. Maintain its status as an entity eligible to borrow from
CoBank.


 


(B)                 
Corporate Existence, Licenses, Etc. (1) Preserve and
keep in full force and effect its existence and good standing in the jurisdiction of
its incorporation or formation; (2) qualify and remain qualified to transact business in all jurisdictions where such qualification
is required; and (3) obtain and maintain all licenses, certificates, permits, authorizations,
approvals, and the like which are material to the conduct of its business or required by law, rule, regulation, ordinance,
code, order, and the like (collectively, "Laws").


 


 



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(C)                
Compliance with Laws. Comply in all material respects
with all applicable Laws, including, without limitation, all Laws relating to environmental protection and any patron or member
investment program that it may have. In addition, the Company agrees to cause all persons occupying or present
on any of its properties, and to cause each Subsidiary to cause all persons occupying or present on any
of its properties, to comply in all material respects with all environmental protection Laws.


 


(D)                
Insurance. Maintain insurance with insurance companies
or associations acceptable to CoBank in such amounts and covering such risks as are
usually carried by companies engaged in the same or similar business and similarly situated, and make such increases in
the type or amount of coverage as CoBank may request. All such policies insuring any collateral
for the Company's obligations to CoBank shall have mortgagee or lender loss payable
clauses or endorsements in form and content acceptable to CoBank. At CoBank's request,
all policies (or such other proof of compliance with this Subsection as may be satisfactory to CoBank) shall be delivered
to CoBank.


 


(E)Property
Maintenance. Maintain all of its property that is necessary to or useful in the
proper conduct of its business in good working condition, ordinary wear and tear excepted.


 


(F)Books
and Records. Keep adequate records and books of account in which complete entries
will be made in accordance with generally accepted accounting principles ("GAAP") consistently applied.


 


(G)
Inspection. Permit CoBank or its agents, upon reasonable notice and during normal business
hours or at such other times as the parties may agree, to examine its properties, books, and records, and to discuss its
affairs, finances, and accounts, with its respective officers, directors, employees, and independent certified public accountants.


 


(H)Reports
and Notices. Furnish to CoBank:


 


(1)Annual
Financial Statements. As soon as available, but in no event more than90
days after the end of each fiscal year of the Company occurring during the term hereof, annual consolidated
and consolidating financial statements of the Company and its consolidated Subsidiaries, if any,
prepared in accordance with GAAP consistently applied. Such financial statements shall: (a) be audited
by independent certified public accountants selected by the Company and acceptable to CoBank; be accompanied by a report of such
accountants containing an opinion thereon acceptable to CoBank; be prepared in reasonable detail and in comparative form; and (d)
include a balance sheet, a statement of income, a statement of retained earnings, a statement of cash flows, and all notes
and schedules relating thereto.


 


(2)                  
Interim Financial Statements. As soon as available,
but in no event more than 30 days after the end of each month, a consolidated balance
sheet of the Company and its consolidated Subsidiaries, if any, as of the end of such
month, a consolidated statement of income for the Company and its consolidated Subsidiaries,
if any, for such period and for the period year to date, and such other interim statements as CoBank may specifically request,
all prepared in reasonable detail and in comparative form in accordance with GAAP consistently
applied and, if required by written notice from CoBank, certified by an authorized
officer or employee of the Company acceptable to CoBank.


 


 



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(3)                  
Notice of Default. Promptly after becoming aware thereof, notice of the occurrence of an Event of Default
or a Potential Default.


 


(4)                  
Notice of Non-Environmental Litigation. Promptly after
the commencement thereof, notice of the commencement of all actions, suits, or proceedings
before any court, arbitrator, or governmental department, commission, board, bureau, agency, or instrumentality affecting the Company
or any Subsidiary which, if determined adversely to the Company or any such Subsidiary, could have a material
adverse effect on the financial condition, properties, profits, or operations of the Company or any such Subsidiary.


 


(5)                  
Notice of Environmental Litigation, Etc. Promptly after
receipt thereof, notice of the receipt of all pleadings, orders, complaints, indictments, or any other communication alleging a
condition that may require the Company or any Subsidiary to undertake or to contribute
to a cleanup or other response under environmental Laws, or which seek penalties,
damages, injunctive relief, or criminal sanctions related to alleged violations of such Laws, or which claim personal injury or
property damage to any person as a result of environmental factors or conditions.


 


(6)                  
Bylaws and Articles. Promptly after any change in the
Company's bylaws or articles of incorporation, or membership and marketing agreement
(or like documents), copies of all such changes, certified by the Company's Secretary.


 


(7)                  
Compliance Certificates. Together with each set of financial statements furnished
to CoBank pursuant to Subsection (H)(2) hereof for a period corresponding to a period for which
one or more of the financial covenants set forth in Section 10 hereof are required to be tested, a certificate
of an officer or employee of the Company acceptable to CoBank setting forth calculations showing
compliance with each of the financial covenants that require compliance at the end of the period for which the statements
are being furnished.


 


(8)                  
Other Information. Such other information regarding the condition or operations,
financial or otherwise, of the Company or any Subsidiary as CoBank may from time to time reasonably
request, including but not limited to copies of all pleadings, notices, and communications referred to in Subsections 8(H)(4)
and (5) above.


 


SECTION
9.Negative Covenants. Unless otherwise agreed to in writing by CoBank, while this agreement is in effect the Company
will not:


 


(A)                
Borrowings. Create, incur, assume, or allow to exist,
directly or indirectly, any indebtedness or liability for borrowed money (including
trade or bankers' acceptances), letters of credit, or the deferred purchase price of
property or services (including capitalized leases), except for: (1) debt to CoBank;
(2) accounts payable to trade creditors incurred in the ordinary course of business; (3) current operating
liabilities (other than for borrowed money) incurred in the ordinary course of business; (4) indebtedness
of the Company under its member or patron investment program, provided, however, that such
indebtedness is expressly stated to be subordinate in right of payment to all obligations of the Company
to CoBank; and (5) debt of the Company to miscellaneous creditors in an amount not to exceed $300,000.00.


 


(B)                 
Liens. Create, incur, assume, or allow to exist any
mortgage, deed of trust, pledge, lien (including the lien of an attachment, judgment,
or execution), security interest, or other encumbrance of any kind upon any of its
property, real or personal (collectively, "Liens"). The forgoing restrictions shall not
apply to: (1) Liens in favor of CoBank; (2) Liens for taxes, assessments, or governmental charges that
are not past due; (3) Liens and deposits under workers' compensation, unemployment insurance, and social
security Laws; (4) Liens and deposits to secure the performance of bids, tenders, contracts (other than contracts for the payment
of money), and like obligations arising in the ordinary course of business as conducted
on the date hereof; (5) Liens imposed by Law in favor of mechanics, materialmen, warehousemen, and like persons that secure obligations
that are not past due; (6) easements, rights-of-way, restrictions, and other similar
encumbrances which, in the aggregate, do not materially interfere with the occupation,
use, and enjoyment of the property or assets encumbered thereby in the normal course of its business or materially impair the value
of the property subject thereto; and (7) Liens in favor of miscellaneous creditors to secure indebtedness permitted hereunder.


 


 



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(C)                
Mergers, Acquisitions, Etc. Merge or consolidate with
any other entity or acquire all or a material part of the assets of any person or
entity, or form or create any new Subsidiary or affiliate, or commence operations under
any other name, organization, or entity, including any joint venture.


 


 


(D)Transfer
of Assets. Sell, transfer, lease, or otherwise dispose of any of its assets, except in the ordinary course
of business.


 


(E)Loans
and Investments. Make any loan or advance to any person or entity, or purchase any capital stock, obligations or other securities
of, make any capital contribution to, or otherwise invest in any person or entity, or form
or create any partnerships or joint ventures except: (1) trade credit extended in the
ordinary course of business; and (2) loans or advances by the Company to Urethane
Soy Systems in an aggregate principal amount not to exceed $8,500,000.00 at any one time outstanding.


 


(F)Contingent
Liabilities. Assume, guarantee, become liable as a surety, endorse, contingently
agree to purchase, or otherwise be or become liable, directly or indirectly (including, but not limited
to, by means of a maintenance agreement, an asset or stock purchase agreement, or any other agreement designed to ensure any creditor
against loss), for or on account of the obligation of any person or entity, except
by the endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course of
the Company's business.


 


(G)Change
in Business. Engage in any business activities or operations substantially different
from or unrelated to the Company's present business activities or operations.


 


(H)Dividends,
Etc. Declare or pay any dividends, or make any distribution of assets to the stockholders,
or purchase, redeem, retire or otherwise acquire for value any of its capital stock, or allocate or otherwise set apart any sum
for any of the foregoing, except that in any fiscal year of the Company, the Company
may pay dividends in an amount up to 35% of its consolidated net income for the prior
fiscal year, provided that no Event of Default or Potential Default shall have occurred and be continuing or would result
therefrom.


 


(I)Leases.
Create, incur, assume, or permit to exist any obligation as lessee under operating leases
which should be capitalized in accordance with GAAP for the rental or hire of any real or personal
property, except: (1) leases of soybean oil storage tank space with aggregate annual payments not
to exceed $400,000.00; (2) leases of up to 437 tanker and/or hopper railroad cars under terms and conditions acceptable to CoBank;
(3) Leases of other railroad cars, excluding those allowed in (2) above, with original maturities of less than sixty (60) months
at the Company's discretion; and (4) other leases, excluding those allowed above,
which do not in the aggregate require the Company to make scheduled payments to the lessors in any fiscal year of the company
during the term hereof in excess of $800,000.00.


 






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SECTION
10.Financial Covenants. Unless otherwise agreed to in writing, while this agreement is in effect:


 


(A)Working
Capital. The Company and its consolidated Subsidiaries will have an excess of
consolidated current assets over consolidated current liabilities (both as determined in accordance with GAAP
consistently applied) of not less than: (1) $8,000,000.00 at the end of each fiscal year of the Company;
and (2) $5,500,000.00 at the end of each other period for which financial statements are required
to be furnished pursuant to Section 8(H) hereof, except that in determining consolidated current assets,
any amount available under the Revolving Term Loan Supplement (less the amount that would be considered a current liability under
GAAP if fully advanced) hereto may be included.


 


(B)Debt
Service Coverage Ratio. The Company and its consolidated Subsidiaries will have
at the end of each fiscal year of the Company a "Debt Service Coverage Ratio" (as defined below) for
such year of not less than 1.2 to 1.0. For purposes hereof, the term "Debt Service Coverage Ratio" shall
mean the following (all as calculated on a consolidated basis for the most current year end in accordance
with GAAP consistently applied): (1) net income (after taxes), plus depreciation and amortization,
minus non-cash patronage income, minus extraordinary gains (+ losses), minus gain (+ loss) on
asset sale; divided by (2) all current portion of long term debt for the prior period (previous year-end).


 


SECTION
11.Events of Default. Each of the following shall constitute an "Event of Default" under this agreement:


 


(A)                
Payment Default. The Company should fail to make any
payment to, or to purchase any equity in, CoBank when due.


 


(B)                 
Representations and Warranties. Any representation or
warranty made or deemed made by the Company herein or in any Supplement, application,
agreement, certificate, or other document related to or furnished in connection with
this agreement or any Supplement, shall prove to have been false or misleading in any
material respect on or as of the date made or deemed made.


 


(C)                
Certain Affirmative Covenants. The Company or, to the
extent required hereunder, any Subsidiary should fail to perform or comply with Sections 8(A) through 8(H)(2), 8(H)(6), 8(H)(7)
or any reporting covenant set forth in any Supplement hereto, and such failure continues for 15 days after written notice
thereof shall have been delivered by CoBank to the Company.


 


(D)                
Other Covenants and Agreements. The Company or, to the extent required hereunder,
any Subsidiary should fail to perform or comply with any other covenant or agreement contained
herein or in any other Loan Document or shall use the proceeds of any loan for an unauthorized purpose.


 


(E)Cross-Default.
The Company should, after any applicable grace period, breach or be in default
under the terms of any other agreement between the Company and CoBank, or between the Company
and any affiliate of CoBank, including without limitation Farm Credit Leasing Services Corporation.


 


(F)Other
Indebtedness. The Company or any Subsidiary should fail to pay when due any
indebtedness to any other person or entity for borrowed money or any long-term obligation for the deferred
purchase price of property (including any capitalized lease), or any other event occurs which, under any agreement or instrument
relating to such indebtedness or obligation, has the effect of accelerating or permitting
the acceleration of such indebtedness or obligation, whether or not such indebtedness
or obligation is actually accelerated or the right to accelerate is conditioned on the giving of notice, the passage of
time, or otherwise.


 


 



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(G)Judgments.
A judgment, decree, or order for the payment of money shall be rendered against
the Company or any Subsidiary and either: (1) enforcement proceedings shall have been commenced;
(2) a Lien prohibited under Section 9(B) hereof shall have been obtained; or (3) such judgment,
decree, or order shall continue unsatisfied and in effect for a period of 20 consecutive days without being vacated, discharged,
satisfied, or stayed pending appeal.


 


(H)
Insolvency, Etc. The Company or any Subsidiary shall: (1) become insolvent or shall generally
not, or shall be unable to, or shall admit in writing its inability to, pay its debts as they come due;
or (2) suspend its business operations or a material part thereof or make an assignment for the benefit of
creditors; or (3) apply for, consent to, or acquiesce in the appointment of a trustee, receiver, or other custodian for it or any
of its property or, in the absence of such application, consent, or acquiescence, a trustee, receiver, or other custodian is so
appointed; or (4) commence or have commenced against it any proceeding under any bankruptcy,
reorganization, arrangement, readjustment of debt, dissolution, or liquidation Law of any jurisdiction.


 


(I)
Material Adverse Change. Any material adverse change occurs, as reasonably determined
by CoBank, in the Company's financial condition, results of operation, or ability to perform its
obligations hereunder or under any instrument or document contemplated hereby.


 


(J)Revocation
of Guaranty. Any guaranty, suretyship, subordination agreement, maintenance agreement,
or other agreement furnished in connection with the Company's obligations hereunder
and under any Supplement shall, at any time, cease to be in full force and effect, or shall be revoked
or declared null and void, or the validity or enforceability thereof shall be contested by the guarantor, surety or other
maker thereof (the "Guarantor"), or the Guarantor shall deny any further liability
or obligation thereunder, or shall fail to perform its obligations thereunder, or any representation or warranty set forth therein
shall be breached, or the Guarantor shall breach or be in default under the terms of
any other agreement with CoBank (including any loan agreement or security agreement), or a default set forth in Subsections (F)
through (H) hereof shall occur with respect to the Guarantor.


 


SECTION
12.Remedies. Upon the occurrence and during the continuance of an Event of Default
or any Potential Default, CoBank shall have no obligation to continue to extend credit to the Company
and may discontinue doing so at any time without prior notice. For all purposes hereof, the term
"Potential Default" means the occurrence of any event which, with the passage of time or the giving of notice or both
would become an Event of Default. In addition, upon the occurrence and during the continuance of any Event of Default, CoBank
may, upon notice to the Company, terminate any commitment and declare the entire unpaid principal
balance of the loans, all accrued interest thereon, and all other amounts payable under this agreement, all Supplements, and the
other Loan Documents to be immediately due and payable. Upon such a declaration, the unpaid principal balance of the loans and
all such other amounts shall become immediately due and payable, without protest,
presentment, demand, or further notice of any kind, all of which are hereby expressly
waived by the Company. In addition, upon such an acceleration:


 


(A)Enforcement.
CoBank may proceed to protect, exercise, and enforce such rights and remedies
as may be provided by this agreement, any other Loan Document or under Law. Each and every one of such rights and remedies
shall be cumulative and may be exercised from time to time, and no failure on the part of
CoBank to exercise, and no delay in exercising, any right or remedy shall operate as a
waiver thereof, and no single or partial exercise of any right or remedy shall preclude any other or future
exercise thereof, or the exercise of any other right. Without limiting the foregoing, CoBank may hold
and/or set off and apply against the Company's obligation to CoBank the proceeds of any equity in CoBank, any cash collateral
held by CoBank, or any balances held by CoBank for the Company's account (whether or not such balances are then due).


 


 



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(B)Application
of Funds. CoBank may apply all payments received by it to the company's obligations to
CoBank in such order and manner as CoBank may elect in its sole discretion. In addition to the rights and remedies set forth
above: (1) upon the occurrence and during the continuance of an Event of Default, then at
CoBank's option in each instance, the entire indebtedness outstanding hereunder and under all Supplements shall bear interest
from the date of such Event of Default until such Event of Default shall have been waived
or cured in a manner satisfactory to CoBank at 4.00% per annum in excess of the rate(s)
of interest that would otherwise be in effect on that loan; and (2) after the maturity
of any loan (whether as a result of acceleration or otherwise), the unpaid principal balance of such loan (including without
limitation, principal, interest, fees and expenses) shall automatically bear interest at 4.00%
per annum in excess of the rate(s) of interest that would otherwise be in effect on that loan. All interest provided for herein
shall be payable on demand and shall be calculated on the basis of a year consisting of 360 days.


 


SECTION
13. Broken Funding Surcharge. Notwithstanding any provision contained in any Supplement
giving the Company the right to repay any loan prior to the date it would otherwise be due and payable, the Company agrees
to provide three Business Days' prior written notice for any prepayment of a fixed rate balance
and that in the event it repays any fixed rate balance prior to its scheduled due date or prior to the last day of the fixed rate
period applicable thereto (whether such payment is made voluntarily, as a result of an acceleration, or otherwise), the Company
will pay to CoBank a surcharge in an amount equal to the greater of: (A) an amount
which would result in CoBank being made whole (on a present value basis) for the actual or imputed funding losses incurred by CoBank
as a result thereof; or (B) $300.00. Notwithstanding the foregoing, in the event any fixed rate balance is repaid as a result of
the Company refinancing the loan with another lender or by other means, then in lieu of
the foregoing, the Company shall pay to CoBank a surcharge in an amount sufficient (on a present value
basis) to enable CoBank to maintain the yield it would have earned during the fixed rate period on the
amount repaid. Such surcharges will be calculated in accordance with methodology established by CoBank (a copy of which will be
made available to the Company upon request).


 


SECTION
14. Complete Agreement, Amendments. This agreement, all Supplements, and all other
instruments and documents contemplated hereby and thereby, are intended by the parties to be a complete and final expression
of their agreement. No amendment, modification, or waiver of any provision hereof or thereof,
and no consent to any departure by the Company herefrom or therefrom, shall be effective
unless approved by CoBank and contained in a writing signed by or on behalf of CoBank, and then such waiver or consent shall
be effective only in the specific instance and for the specific purpose for which given.
In the event this agreement is amended or restated, each such amendment or restatement shall be applicable to all Supplements
hereto.


 


SECTION
15.Other Types of Credit. From time to time, CoBank may issue letters of credit or
extend other types of credit to or for the account of the Company. In the event the parties desire to do so
under the terms of this agreement, such extensions of credit may be set forth in any Supplement hereto and this agreement
shall be applicable thereto.


 


SECTION
16.Applicable Law. Without giving effect to the principles of conflict of laws and except
to the extent governed by federal law, the Laws of the State of Colorado, without reference to choice
of law doctrine, shall govern this agreement, each Supplement and any other Loan Documents for which
Colorado is specified as the applicable law, and all disputes and matters between the parties to this agreement, including all
disputes and matters whatsoever arising under, in connection with or incident to the lending and/or leasing or other business
relationship between the parties, and the rights and obligations of the parties to this agreement
or any other Loan Documents by and between the parties for which Colorado is specified as the applicable law.


 






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SECTION
17.Notices. All notices hereunder shall be in writing and shall be deemed to be duly given
upon delivery if personally delivered or sent by telegram or facsimile transmission, or three days after mailing if sent by express,
certified or registered mail, to the parties at the following addresses (or such other address for a party as shall be specified
by like notice):


 


If
to CoBank, as followsIf to the Company, as follows:


 





	For general correspondence purposes:	South Dakota Soybean Processors, LLC
	P.O. Box 5110	Box 500
	Denver, Colorado 80217-5110	Volga, South Dakota 57071
	 	 
	For direct delivery purposes, when desired:	 
	5500 South Quebec Street	 
	Greenwood Village, Colorado 80111-1914	 
	 	 
	Attention: Credit Information Services	Attention:  CEO
	Fax No.: (303)224-6101	Fax No.: (605) 6275869







  


SECTION
18. Taxes and Expenses. To the extent allowed by law, the Company agrees to pay all
reasonable out-of-pocket costs and expenses (including the fees and expenses of counsel retained or employed
by CoBank) incurred by CoBank and any participants from CoBank in connection with the origination, administration, collection,
and enforcement of this agreement and the other Loan Documents, including, without
limitation, all costs and expenses incurred in perfecting, maintaining, determining the priority of, and releasing any security
for the Company's obligations to CoBank, and any stamp, intangible, transfer, or like tax
payable in connection with this agreement or any other Loan Document.


 


SECTION
19. Effectiveness and Severability. This agreement shall continue in effect until: (A)
all indebtedness and obligations of the Company under this agreement, all Supplements, and all other Loan
Documents shall have been paid or satisfied; (B) CoBank has no commitment to extend credit to or for
the account of the Company under any Supplement; and (C) either party sends written notice to the other
terminating this agreement. Any provision of this agreement or any other Loan Document which is prohibited or unenforceable in
any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating
the remaining provisions hereof or thereof.


 


SECTION
20. Successors and Assigns. This agreement, each Supplement, and the other Loan Documents shall be binding upon
and inure to the benefit of the Company and CoBank and their respective successors and assigns,
except that the Company may not assign or transfer its rights or obligations under
this agreement, any Supplement or any other Loan Document without the prior written consent of CoBank.


 


SECTION
21. Participations, Etc. From time to time, CoBank may sell to one or more banks, financial
institutions, or other lenders a participation in one or more of the loans or other extensions of credit
made pursuant to this agreement. However, no such participation shall relieve CoBank of any commitment
made to the Company hereunder. In connection with the foregoing, CoBank may disclose information
concerning the Company and its Subsidiaries, if any, to any participant or prospective participant,
provided that such participant or prospective participant agrees to keep such information confidential. Patronage distributions
in the event of a sale of a participation interest shall be governed by CoBank's Bylaws and Capital Plan (as each may be
amended from time to time). A sale of a participation interest may include certain voting
rights of the participants regarding the loans hereunder (including without limitation
the administration, servicing, and enforcement thereof). CoBank agrees to give written
notification to the Company of any sale of a participation interest.


  


SECTION
22. Amendment Fee. In consideration of the amendment, the Company agrees to pay to CoBank on the execution hereof, a
fee in the amount of $7,500.00.






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


 





	CoBANK, ACB	 	SOUTH DAKOTA SOYBEAN PROCESSORS,  LLC
	 	 	 	 	 
	 	 	 	 	 
	By:	 	 	By: 	 /s/ Thomas J. Kersting
	 	 	 	 	 
	Title:	 	 	Title:	 Chief Executive Officer







 





 






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