Document:

Exhibit
10.1

      
 

    

    AMENDMENT

    TO
THE

    MASTER
LOAN AGREEMENT

    

    

    THIS
AMENDMENT is entered into as of September 16, 2009, 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 October 6. 2005
(such agreement, as previously amended, is hereinafter referred to as the
“MLA”). CoBank and the Company now desire to amend the MLA. For that reason, and
for valuable consideration (the receipt and sufficiency of which are hereby
acknowledged), CoBank and the Company agree as follows:

    

    1.    A new Section
8(I) and 8J(J) of the MLA is being added in its entirety and shall read as
follows:

    

    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:

    

    (I)        Company
Post-Closing Property Search, Mortgage and Title Policy.

    

    (1)          On
or before January 1, 2010, provide CoBank with a property search for
Company-owned property in Brookings County, South Dakota and such other counties
as CoBank may reasonably deem appropriate (the “Company Property”).

    

    (2)          On
or before June 1, 2010, provide CoBank with:

    

    (a)        new
or amended mortgage(s) or deed(s) of trust in the face amount of $55,000,000.00,
collectively, granting to CoBank a first lien (subject only to exceptions
approved in writing by CoBank) on the Company Property; and

    

    (b)              a
title commitment from a title insurance company acceptable to CoBank to issue an
ALTA lender’s policy of title insurance in the face amount of $15,000,000.00
insuring the Company mortgage(s) or deed(s) of trust to CoBank as first priority
lien(s) on the Company Property, subject only to exceptions approved in writing
by CoBank.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        2

      

    

    Exhibit
10.1

    (3)          The
Company agrees to pay 100% of the cost of such property search, commitment and
the related policy, together with such endorsements as may be reasonably
requested by CoBank, and also agrees that if, for any reason, a final lender’s
policy is not issued to CoBank by June 1, 2010, or such later date as may be
agreeable to CoBank, then an “Event of Default” shall be deemed to have occurred
under this agreement.

    

    

    (J) Assignment of Hedging
Agreement. The Company will provide to CoBank by November 1, 2009, or
such later date as may be agreeable to CoBank, a duly executed copy of a
Security Agreement and Assignment of Hedging Account, in form and substance
acceptable to CoBank; and such certified board resolutions, evidence of
incumbency, and other evidence as CoBank may require that each agreement has
been duly authorized and executed.

    

    2.    Section 10(A)
of the MLA is hereby amended and restated to read as follows:

    

    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) beginning with fiscal year
end, December 31, 2009, $7,500,000.00 at the end of each fiscal year of the
Company; and (2) $6,000,000.00 at the end of each other period for which
financial statements are required to be furnished pursuant to Section 8(11)
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.

    

    3.    Except as set
faith in this amendment, the MLA, including all amendments thereto, shall
continue in full force and effect as written.

    

    

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

    

    
      
        	
                CoBANK,
      ACB

              	
                SOUTH
      DAKOTA SOYBEAN

              
	 
      	
                PROCESSORS,
      LLC

              
	 
      	 
      
	
                By:
      /s/ Tokie
      Akrie                                 
      

              	
                By:
      /s/ Rodney
      Christianson                
      

              
	 
      	 
      
	
                Title:
      Assistant Corporate
      Secretary    

              	
                Title:
      CEO                                                

              

      

    

     

    
      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Exhibit
10.1

    

     

    SECURITY
AGREEMENT

    

    This
SECURITY AGREEMENT, made and executed as of the 16th day of September,
2009, by
and among SOUTH DAXOTA SOYBEAN
PROCESSORS, LLC of Volga, South Dakota,
hereinafter referred to as “COMPANY”; COUNTRY HEDGING, INC. of Inver
Grove Heights,
Minnesota, a commodity brokerage firm, hereinafter called “BROKER”; and CoBANK, ACB, hereinafter
referred to as “CoBANK”;

    

    WITNESSETH:

    

    WHEREAS,
CoBANK has entered into a loan agreement (“Loan Agreement”) with the Company and
pursuant thereto has also extended revolving credit and/or term loan agreements
all extensions, renewals and amendments thereof being hereinafter referred to as
the “Loan”;

    

    WHEREAS,
one of the purposes of the Loan is to finance margin deposits with BROKER in
Accounts #B 43500, #B 43501, #B
43502, T-Bills, and all other accounts of the COMPANY with the BROKER
whether now existing or hereafter created or acquired, hereinafter referred to
as “Accounts”, required by the COMPANY’S ordinary grain marketing operations;
and

    

    WHEREAS,
the use of such Loan benefits both CoBANK and the COMPANY, by enabling the
COMPANY to obtain advances to liquidate indebtedness now owing by it, or which
in the future may be owing by it, including obligations to BROKER regarding the
Accounts.

    

    NOW,
THEREFORE, for and in consideration of the mutual promises herein contained, and
for the benefits to be gained therefrom, and pursuant to the requirements of the
security provisions of the Loan Agreement requiring the COMPANY to execute such
documents as are necessary to provide a first lien on its collateral to CoBANK,
the sufficiency of which is hereby acknowledged, the parties hereto agree as
follows:

    

    
      1.    COMPANY
AGREES:

    

    

    That
COMPANY hereby grants a security interest in and assigns and transfers to
CoBANK, any balance which may remain to the credit of the Accounts upon the
closing thereof; subject, however, to the prior payment of the indebtedness of
COMPANY to BROKER. COMPANY further agrees to execute financing statements or any
other documents necessary to perfect CoBANK’s security interest in said
Accounts.

    

    2.    BROKER
AGREES:

    

    That if
CoBANK should ever deem itself insecure, accelerate the maturity of the
aforesaid loan, or refuse to extend the aforesaid loan on its stated maturity
date or any extension thereof, CoBANK may, without any liability therefore,
request that BROKER suspend further transactions and close out the Accounts and
promptly refund all remaining margin deposits or other credits, subject to the
prior payment of all indebtedness of the COMPANY to BROKER, including fees and
commissions, directly to CoBANK for application on its loans to the COMPANY.
BROKER agrees to promptly comply with such request.

    
      

      
        
          
          

        

        
          
          

          
            

          

        

        
          2

        

      

      Exhibit
10.1

    

     

    
      3.    THE
PARTIES AGREE:

    

    

    (a)          That
nothing contained herein shall be construed so as to prevent COMPANY from
remaining the owner, subject to the interest of CoBANK as it may appear, of the
Accounts.

    

    (b)          CoBANK
is hereby authorized and empowered to receive from Broker, and Broker is
authorized and directed to deliver to CoBANK, copies of all Commodity Contracts’
confirmations, monthly position and ledger account statements, and all matters
pertaining to the Accounts.

    

    (c)          That
notices under the Agreement shall be sent to the parties at the following
addresses, unless otherwise directed by written Notice:

    

    
      	
               
      

            	
              COMPANY:

            	
              South Dakota Soybean
      Processors, LLC

            
	 	 	

              100
      Caspian Avenue

            
	 	 	Volga, South Dakota
      57071
	 	 	 
	 	

              BROKER:

            	

              COUNTRY HEDGING,
      INC.

            
	 	 	5500 Cenex
    Drive
	 	 	Inver Grove Heights, MN
      55077
	 	 	 
	 	

              CoBANK:

            	

              Vice
      President

            
	 	 	Commercial
      Agribusiness
	 	 	 CoBANK, ACE
	 	 	11422 Miracle Hills Drive,
      Suite 300
	 	 	Omaha, NE
      68154-4404

    

     

    (d)          That
in the event the funds held in the Accounts are determined by any court of law
with valid jurisdiction to be cash for the purpose of applying any provision of
the Uniform Commercial Code, BROKER shall be deemed to be CoBANK’s agent for the
purpose of holding such cash as collateral for CoBANK.

    
      

      
        
          
          

        

        
          
          

          
            

          

        

        
          3

        

      

      Exhibit
10.1

    

     

    IN
WITNESS WHEREOF, the parties have by their fully authorized representatives
executed this Agreement on the date first above written.

    

    
      
        	
                COUNTRY
      HEDGING INC.,

              	
                SOUTH
      DAKOTA SOYBEAN

              
	
                as
      Broker

              	
                PROCESSORS,
      LLC,

              
	 
      	
                as
      Company

              
	 
      	 
      
	 
      	 
      
	
                By:
      _________________________

              	
                By: 
      /s/ Rodney
      Christianson                      
      

              
	
                Title:_____________________

              	
                Title:
      CEO                                               
      

              
	 
      	 
      
	 
      	 
      
	 
      	
                CoBANK,
      ACB

              
	 
      	 
      
	 
      	
                By:
      _____________________________

              
	 
      	
                Assistant
      Corporate SecretaryExhibit
10.2

    

    
 

    REVOLVING
TERM LOAN SUPPLEMENT

    

    

    THIS SUPPLEMENT to the Master Loan
Agreement dated October 6, 2005 (the “MLA”), is entered into as of September 16,
2009 between CoBANK, ACB (“CoBank”) and
SOUTH DAKOTA SOYBEAN
PROCESSORS, LLC, Volga, South Dakota (the “Company”), and amends and
restates the Supplement dated March 23, 2009 and numbered RIB05
IT05D.

    

    SECTION 1. The Revolving Term Loan
Commitment. On the terms and conditions set forth in the MLA and this
Supplement, CoBank agrees to make loans to the Company from the date hereof; up
to and including September 20, 2013, in an aggregate principal amount not to
exceed, at any one time outstanding, $11,900,000.00 less the amounts scheduled
to be repaid during the period set forth below in Section 5 (the “Commitment”).
Within the limits of the Commitment, the Company may borrow, repay, and
reborrow.

    

    The
Company may, in its sole discretion, elect to permanently reduce the amount of
the Commitment by giving CoBank ten (10) days prior written notice. Said
election shall be made only if the Company is not in default at the time of the
election and will remain in compliance with all financial covenants after such
reduction. Any such reduction shall be treated as an early, voluntary reduction
of the Commitment amount and shall not delay or reduce the amount of any
scheduled Commitment reduction under Section 5 hereof (which reductions shall
continue in semi-annual increments of $1,300,000.00 on the dates determined in
accordance with Section 5), but rather shall result
in an earlier expiration of the Commitment and final maturity of the
loans.

    

    SECTION 2. Purpose. The
purpose of the Commitment is to provide working capital to the Company and to
finance the construction of a soybean refinery.

    

    SECTION 3. Term.
Intentionally Omitted.

    

    SECTION 4. Interest. The Company agrees
to pay interest on the unpaid balance of the loan(s) in accordance with one or
more of the following interest rate options, as selected by the

    Company:

    

    (A)                 One-Month LIBOR Index Rate. At
a rate (rounded upward to the nearest 1/100th and adjusted for reserves required
on “Eurocurrency Liabilities” [as hereinafter defined] for banks subject to “FRB
Regulation D” [as hereinafter defined] or required by any other federal law or
regulation) per annum equal at all times to 3.25% above the rate quoted by the
British Bankers Association (the “BBA”) at 11:00 a.m. London time for the
offering of one (1)-month U.S. dollars deposits, as published by Bloomberg or
another major information vender listed on BBA’s official website on the first
“U.S. Banking Day” (as hereinafter defined) in each

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        2

      

      
        Exhibit
10.2

      

       

    

    week,
with such rate to change weekly on such day. The rate shall be reset
automatically, without the necessity of notice being provided to the Company or
any other party, on the first “U.S. Banking Day” of each succeeding week, and
each change in the rate shall be applicable to all balances subject to this
option. Information about the then-current rate shall be made available upon
telephonic request. For purposes hereof: (1) “U.S. Banking Day” shall mean a day
on which CoBank is open for business and banks are open for business in New
York, New York, (2) “Eurocurreney Liabilities” shall have the meaning as set
forth in “FRB Regulation B”; and (3) Regulation D” shall mean Regulation D as
promulgated by The Board of Governors of the Federal Reserve System, 12 CFR Part
204, as amended.

    

    (B)                  Quoted Rate. At a fixed rate
per annum to be quoted by CoBank in its sole discretion in each instance. Under
this option, rates may be fixed on such balances and for such periods, as may be
agreeable to CoBank in its sole discretion in each instance, provided that: (1)
the minimum fixed period shall be 30 days; (2) amounts may be fixed in
increments of $100,000.00 or multiples thereof; and (3) the maximum number of
fixes in place at any one time shall be five.

    

    The
Company shall select the applicable rate option at the time it requests a loan
hereunder and may, subject to the limitations set forth above, elect to convert
balances bearing interest at the variable rate option to one of the fixed rate
options. Upon the expiration of any fixed rate period, interest shall
automatically accrue at the variable rate option provided for above unless the
amount fixed is repaid or fixed for an additional period in accordance with the
terms hereof. Notwithstanding the foregoing, rates may not be fixed in such a
manner as to cause the Company to have to break any fixed rate balance in order
to pay any installment of principal. All elections provided for herein shall be
made telephonically or in writing and must be received by 12:00 Noon Company’s
local time. Interest shall be calculated on the actual number of days each loan
is outstanding on the basis of a year consisting of 360 days and shall be
payable monthly in arrears by the 20th day of the following month or on such
other day in such month as CoBank shall require in a written notice to the
Company.

    

    SECTION 5. Promissory Note.
The Company promises to repay on the date of each reduction in the
Commitment, the outstanding principal, if any, that is in excess of the
available balance. The available balance shall be decreased by $1,300,000.00 on
the 20th day of each September and March beginning September 20, 2009, and
continuing through and including March 20, 2013, followed by a final reduction
at the expiration of the Commitment on September, 20, 2023, at which time any
outstanding balance shall be due and payable in full. If any installment due
date is not a day on which CoBank is open for business, then such payment shall
be made on the next day on which CoBank is open for business. In addition to the
above, the Company promises to pay interest on the unpaid principal balance
hereof at the times and in accordance with the provisions set forth in Section
4 hereof. This
note replaces and supersedes, but does not constitute payment of the
indebtedness evidenced by, the promissory note set forth in the Supplement being
amended and restated hereby.

    
      

      
        
          
          

        

        
          
          

          
            

          

        

        
          3

        

        
          Exhibit
10.2

        

         

      

    

    SECTION 6. Security. The
Company’s obligations hereunder and, to the extent related hereto, the MLA,
shall be secured as provided in the Security Section of the MLA, including
without limitation as a future advance under any existing mortgage or deed of
trust.

    

    SECTION 7. Commitment Fee. In
consideration of the Commitment, the Company agrees to pay to CoBank a
commitment fee on the average daily unused portion of the Commitment at the rate
of 0.50% per annum (calculated on a 360-day basis), payable monthly in arrears
by the 20th day following each month. Such fee shall be payable for each month
(or portion thereof) occurring during the original or any extended term of the
Commitment.

    

    

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

    

    
      	
              CoBANK
      ACB

            	 
      	
              SOUTH
      DAKOTA SOYBEAN

            
	 
      	 
      	
              PROCESSORS,
      LLC

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	
              By:
      /s/ Tokie
      Akrie                                 
      

            	 
      	
              By:
      /s/ Rodney
      Christianson          
      

            
	 
      	 
      	 
      
	
              Title:
      Assistant Corporate
      Secretary    

            	 
      	
              Title:
      CEO

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