Document:

Exhibit 10.22

 

STATUSED REVOLVING CREDIT SUPPLEMENT

 

THIS SUPPLEMENT to the Master Loan
Agreement dated October 6, 2005 (the “MLA”), is entered into as of December 28,
2007, between CoBANK, ACB  (“CoBank”) and
SOUTH DAKOTA SOYBEAN PROCESSORS, LLC, Volga, South Dakota (the “Company”), and
amends and restates the Supplement dated October 10, 2007 and numbered
RIB051SO1G.

 

SECTION 1.  The
Revolving Credit Facility.  On
the terms and conditions set forth in the MLA and this Supplement, CoBank
agrees to make loans to the Company in an aggregate principal amount not to
exceed, at any one time outstanding, the lessor of the “Borrowing Base” (as
calculated pursuant to the Borrowing Base Report attached hereto as Exhibit A)
or the following amounts during each commitment period: (1) $38,000,000.00
during the period commencing on the date hereof, and ending on and including June 1,
2008; and (2) $28,000,000.00 during the period commencing on June 2,
1008, and ending on and including October 1, 2008 (the “Commitment”).  Within the limits of the Commitment, the
Company may borrow, repay, and reborrow.

 

SECTION 2. 
Purpose.  The purpose
of the Commitment is to finance the inventory and receivables referred to in
the Borrowing Base Report.

 

SECTION 3.   Term.  Intentionally Omitted.

 

SECTION 4.   Interest.
The Company agrees to pay interest on the unpaid balance of the loans in
accordance with. One or more of the following interest rate options, as
selected by the Company:

 

(A)          CoBank Base Rate.
At a rate per annum equal at all times to 1⁄2 of 1% below the rate of interest
established by CoBank from time to time as its CoBank Base Rate, which Rate is
intended by CoBank to be a reference rate and not its lowest rate. The CoBank
Base Rate will change on the date established by CoBank as the date of date of
any change therein and CoBank agrees to notify the Company of any such change.

 

(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 maybe 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 5.

 

 

The
Company shall select the applicable rate option at the lime it requests a loan
hereunder and way, 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 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 for periods expiring
after the maturity date of the loans. 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 the unpaid principal balance of the loans on the last
day of the term of the Commitment, except that on June 2, 2008, the
Company promises to pay so much of the loans as is necessary to reduce the
outstanding balance of the loans to the limit of the Commitment.  In addition to the above, the Company
promises to pay interest on the unpaid principal balance of the loans 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.

 

SECTION 6.  
Borrowing Base Reports, Etc. The Company agrees to
fizrn3.sh a Borrowing Base Report to CoBank at such times or intervals as
CoBank may from time to time request. Until receipt of such a request, the
Company agrees to furnish a Borrowing Base Report to CoBank within 30 days
after each month end calculating the Borrowing Base as of the last day of the
month for with the Report is being furnished. 
However, if no balance is outstanding hereunder on the last day of such
month, then no Report need be furnished. 
Regardless of the frequency of the reporting, if at any time the amount
outstanding under the Commitment exceeds the Borrowing Base, the Company shall
immediately notify CoBank and repay so much of the loans as necessary to reduce
the amount outstanding under the Commitment to the limits of the Borrowing
Base.

 

SECTION 7.  
Letters of Credit.  If
agreeable to CoBank in. its sole discretion in each instance; in addition to
loans, the Company may utilize the Commitment to open irrevocable letters of
credit for its account. Each letter of credit will be issued within a
reasonable period of time after receipt of a duly completed and executed copy
of CoBank’s then current form of application or, if applicable, in accordance
with the terms of any CoTrade Agreement between the parties, and shall reduce
the amount available under the Commitment by the maximum amount capable of
being drawn thereunder. Any 

 

2

 

draw
under any letter of credit issued hereunder shall be deemed an advance under
the Commitment. Each letter of credit must be in form and content acceptable to
CoBank and must expire no later than the maturity date of the Commitment.
Notwithstanding the foregoing or any other provision hereof, the maximum amount
capable of being drawn under each letter of credit must he statused against the
Borrowing Base in the same manner as if it were a loan, and in the event that
(they repaying all loans) the maximum amount capable of being drawn under the
letters of credit exceeds the Borrowing Base, then the Company shall
immediately notify CoBank and pay to CoBauk (to be held as cash collateral) am
amount equal lo such excess.

 

SECTION 8. 
Commitment Fee. In consideration of the Commitment, the
Company agrees to pay to CoBank a commitment fan on the average daily unused
portion of the Commitment at the rate of 1/4 of 1% 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 For purposes of calculating
the commitment fee only, the “Commitment” shall mean the dollar amount
specified in Section 1 hereof, irrespective of the Borrowing Base.

 

SECTION 9.  
Amendment fee. In consideration of the amendment, the
Company agrees to pay to CoBank on the execution hereof a fee in the amount of
$2,500.00.

 

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:

  	
    Pam
  Schulz

  	
   

  	
  By:

  	
  /s/
  Rodney Christianson

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
    Assistant
  Corporate Secretary

  	
   

  	
  Title:
  

  	
  CEO

  
							

 

3Exhibit 10.23

 

STATUSED REVOLVING CREDIT SUPPLEMENT

 

THIS SUPPLEMENT to the Master Loan
Agreement dated October 6, 2005 (the “MLA”), is entered into as of February 20,
2008 between CoBANK, ACB (“CoBank”)
and SOUTH DAKOTA SOYBEAN PROCESSORS, LLC,
Volga, South Dakota (the “Company”), and amends and restates the
Supplement dated December 28, 2007 and numbered R1B051SO1D.

 

SECTION 1.  The
Revolving Credit Facility.   On
the terms and conditions set forth in the MLA and this Supplement, CoBank
agrees to make loans to the Company in an aggregate principal amount not to
exceed, at any one time outstanding, the lesser of the “Borrowing Base” (as
calculated pursuant to the Borrowing Base Report attached hereto as Exhibit A)
or the following amounts during each commitment period: (1) $50,000,000.00
during the period commencing on the date hereof and ending on and including July 1,
2008; and (2) $28,000,000.00 during the period commencing on July 2,
2008 and ending on and including October 1, 2008 (the “Commitment”).  Within the limits of the Commitment, the
Company may borrow, repay, and reborrow.

 

SECTION 2.  
Purpose.   The
purpose of the Commitment is to finance the inventory and receivables referred
to in the Borrowing Base Report.

 

SECTION 3.   Term.   Intentionally Omitted.

 

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

 

(A)     CoBank
Base Rate.   At a rate
per annum equal at all times to 1⁄2 of 1% below the rate of interest established
by CoBank from time to time as its CoBank Base Rate, which rate is intended by
CoBank to be a reference rate and not its lowest rate.  The CoBank Base Rate will change on the date
established by CoBank as the effective date of any change therein and CoBank
agrees to notify the Company of any such change.

 

(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 $500,000.00 or multiples thereof; and (3) the maximum number
of fixes in place at any one time shall be 10.

 

 

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 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 for periods
expiring after the maturity date of the loans. 
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
the unpaid principal balance of the loans on the last day of the term of the
Commitment, except that on July 2, 2008, the Company promises to pay so
much of the loans as is necessary to reduce the outstanding balance of the
loans to the limit of the Commitment.  In
addition to the above, the Company promises to pay interest on the unpaid
principal balance of the loans 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.

 

SECTION 6.  
Borrowing Base Reports, Etc.   The Company agrees to furnish a Borrowing
Base Report to CoBank at such times or intervals as CoBank may from time to
time request.  Until receipt of such a
request, the Company agrees to furnish a Borrowing Ease Report to CoBank within
30 days after each month end calculating the Borrowing Base as of the last day
of the month for which the Report is being furnished.  However, if no balance is outstanding hereunder
on the last day of such month, then no Report need be furnished.  Regardless of the frequency of the reporting,
if at any time the amount outstanding under the Commitment exceeds the
Borrowing Base, the Company shall immediately notify CoBank and repay so much
of the loans as is necessary to reduce the amount outstanding under the
Commitment to the limits of the Borrowing Base.

 

SECTION 7.  
Letters of Credit.   If
agreeable to CoBank in its sole discretion in each instance, in addition to
loans, the Company may utilize the Commitment to open irrevocable letters of
credit for its account.  Each letter of
credit will be issued within a reasonable period of time after CoBank’s receipt
of a duly completed and executed copy of CoBank’s then current form of
Application 

 

2

 

and
Reimbursement Agreement or, if applicable, in accordance with the terms of any
CoTrade Agreement between the parties, and shall reduce the amount available
under the Commitment by the maximum amount capable of being drawn thereunder.  Any draw under any letter of credit issued
hereunder shall be deemed a loan under the Commitment and shall be repaid in
accordance with this Supplement.  Each
letter of credit must be in form and content acceptable to CoBank and must
expire no later than the maturity date of the Commitment.  Notwithstanding the foregoing or any other
provision hereof, the maximum amount capable of being drawn under each letter
of credit must be statused against the Borrowing Base in the same manner as if
it were a loan, and in the event that (after repaying all loam) the maximum
amount capable of being drawn under the letters of credit exceeds the Borrowing
Base, then the Company shall immediately notify CoBank and pay to CoBank (to be
held as cash collateral) an amount equal to such excess.

 

SECTION 8.  
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 1/4 of 1% 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.  For purposes of calculating the commitment
fee only, the “Commitment” shall mean the dollar amount specified in Section 1
hereof, irrespective of the Borrowing Base.

 

SECTION 9.  
Amendment Fee.   In
consideration of the amendment, the Company agrees to pay to CoBank on the
execution hereof a fee in the amount of $2,500.00.

 

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/
  Pam Schulz

  	
   

  	
  By:

  	
    /s/
  Rodney Christianson

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
    Assistant
  Corporate Secretary

  	
   

  	
  Title:

  	
    CEO

  

 

3

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