**EXHIBIT 10.3****Fixed Rate Note**     Note Date: April 16, 2007 $27,605,870.00Maturity 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 of TwentySeven Million Six Hundred and Five Thousand Eight Hundred Seventy and 00/100 Dollars($27,605,870.00), 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 at a per annum rateequal to the three month LIBOR RATE plus three hundred (300) basis points, and at the LIBOR RATEplus six hundred (600) basis points in excess of said aggregate interest rate from time to timeafter maturity, whether by acceleration or otherwise. Interest shall be calculated on the basis ofa 360-day year, counting the actual number of days elapsed.**REPAYMENT TERMS.**Interest on the outstanding principal balance shall be due and payable quarterly,in arrears, with the first payment commencing on July 10, 2007. Principal shall be due and payablein the amounts and on the dates set forth in Schedule I, attached to the AGREEMENT, which isincorporated herein by reference. In all events, the entire outstanding principal balance,together with all accrued and unpaid interest, shall be immediately due and payable in full onApril 16, 2012.**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 NOTEand 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
1

 
shall not excuse the BORROWER from making subsequent payments each quarter until the indebtednessis paid in full. No payment of EXCESS CASH FLOW shall be the cause of a payment to BANK forinterest rate breakage fees or 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**