**EXHIBIT 10.2****Variable Rate Note**     Note Date: April 16, 2007 $17,605,870.00Maturity Date: April 16, 2012  **FOR VALUE RECEIVED**, RED TRAIL ENERGY, LLC, a North Dakota limited liability company (“BORROWER”),promises to pay to the order of First National Bank of Omaha (“BANK”), at its principal office orsuch other address as BANK or holder may designate from time to time, the principal sum ofSeventeen Million Six Hundred and Five Thousand Eight Hundred Seventy and 00/100 Dollars($17,605,870.00), or the amount shown on the BANK’s records to be outstanding, plus interest(calculated on the basis of actual days elapsed in a 360-day year) accruing each day on the unpaidprincipal balance at the annual interest rates defined below. Absent manifest error, the BANK’srecords shall be conclusive evidence of the principal and accrued interest owing hereunder.This promissory note is executed pursuant to a Construction Loan Agreement between BORROWER andBANK dated as of December 16, 2005, (the Construction Loan Agreement, together with all amendmentsthereto is called the “AGREEMENT”). All capitalized terms not otherwise defined in this note shallhave the meanings provided in the AGREEMENT.**INTEREST ACCRUAL.**Interest on the principal amount outstanding shall accrue based on a three monthLIBOR RATE plus three hundred forty (340) basis points from time to time until maturity, and at theLIBOR RATE plus six hundred (600) basis points in excess of said aggregate interest rate from timeto time after maturity, whether by acceleration or otherwise. Interest shall be calculated on thebasis of a 360-day year, counting the actual number of days elapsed.**INCENTIVE PRICING.**The interest rate applicable to this promissory note is subject to reductionafter a date six months subsequent to CONSTRUCTION COMPLETION DATE, based on the business resultsof BORROWER. In the event that BORROWER maintains the following ratios, the interest rates will bereduced accordingly:     If INDEBTEDNESS to NET WORTH   is less than: Interest will be: 1.15: 1.00 3 month LIBOR RATE plus 325 basis points1.00: 1.00 3 month LIBOR RATE plus 300 basis points.75 : 1.00 3 month LIBOR RATE plus 275 basis points**REPAYMENT TERMS.**Interest and Principal shall be due and payable in the amounts described in theAGREEMENT, which will be applied to this Note and the LONG TERM REVOLVING NOTE, in the mannerdescribed in the AGREEMENT. Any remaining principal balance, plus any accrued but unpaid interest,shall be fully due and payable on April 16, 2012.
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**PREPAYMENT.**The BORROWER may prepay this promissory note in full or in part at any time.Provided, however, a condition of any prepayment of all of the FIXED RATE NOTE, VARIABLE RATE NOTE,and LONG TERM REVOLVING NOTE is that certain fees shall be paid to BANK. If such completeprepayment occurs within the first three years following COMPLETION DATE, a fee of one (1%) percentof the amount prepaid shall be paid to BANK.In addition, if complete or partial prepayment occurs, a fee shall be paid to BANK equal to theamount calculated by the following formula: (Original LIBOR RATE minus current LIBOR RATE)multiplied by the amount prepaid, multiplied by the number of days to the next scheduled interestadjustment day, divided by 360. Any prepayment may be applied in inverse order of maturity or asthe BANK in its sole discretion may deem appropriate. Such prepayment shall not excuse theBORROWER from making subsequent payments each quarter until the indebtedness is paid in full. Nopayment of EXCESS CASH FLOW shall be the cause of a payment to BANK for interest rate breakage feesor otherwise result in any prepayment fee.**ADDITIONAL TERMS AND CONDITIONS.**The AGREEMENT, and any amendments or substitutions, containsadditional terms and conditions, including default and acceleration provisions, which areincorporated into this promissory note by reference. The BORROWER agrees to pay all costs ofcollection, including reasonable attorneys fees and legal expenses incurred by the BANK if thispromissory note is not paid as provided above. This promissory note shall be governed by thesubstantive laws of the State of Nebraska.**WAIVER OF PRESENTMENT AND NOTICE OF DISHONOR.**BORROWER and any other person who signs, guaranteesor endorses this promissory note, to the extent allowed by law, hereby waives presentment, demandfor payment, notice of dishonor, protest, and any notice relating to the acceleration of thematurity of this promissory note.      **RED TRAIL ENERGY, LLC**