Document:

Exhibit 10.22

 

FOURTH
AMENDED AND RESTATED

IRREVOCABLE STANDBY LETTER OF CREDIT

 

	
   

  	
   

  	
  Letter of Credit No. 1158

  
	
   

  	
   

  
	
  Date of Issuance:

  	
  February 16, 2006

  
	
   

  	
   

  
	
  Issuer:

  	
  Home Federal Bank

  
	
   

  	
  225 South Main Avenue

  
	
   

  	
  Sioux Fails, SD 57104

  
	
   

  	
   

  
	
  To:

  	
  Northwestern Services Corporation

  
	
   

  	
  25 S. Dakota Avenue, Suite 1100

  
	
   

  	
  Sioux Falls, SD 57104-6403

  

 

This
Fourth Amended and Restated Irrevocable Standby Letter of Credit amends,
restates and replaces that certain Third Amended and Restated Irrevocable
Standby Letter of Credit dated February 28, 2005 by Home Federal Bank
(Letter of Credit No. 1158).

 

1.                                       Home Federal Bank (the “Bank”) hereby
establishes in favor of NorthWestern Services Corporation (“NSC,” successor by
merger to NorthWestern Energy Corporation) an Irrevocable Standby Letter of
Credit (the “Letter of Credit”) at the request and for the account of Great
Plains Ethanol, LLC, a South Dakota limited liability company (“Great Plains”),
whereby the Bank, subject to the terms and conditions contained herein,
authorizes NSC to draw on it at any time or times before the Expiration Date
(as defined below), by its draft (the “Draft”), in the form of Appendix 1
hereto, an amount up to an aggregate amount of $960,000.00, as set forth on an
accompanying certificate (the “Draw Certificate”), in the form of Appendix
2 hereto.

 

2.                                       This Letter of Credit shall expire at the
close of business on March 1, 2007 (the “Expiration Date”), unless
extended.

 

3.                                       This Letter of Credit is issued in
conjunction with a Natural Gas Distribution Delivery Agreement between
NorthWestern Energy Corporation and Great Plains dated September 2, 2002
(the “Agreement”), under which Great Plains agreed to transport a minimum
quantity of natural gas to its plant at a fixed price for delivery through a
pipeline constructed to serve the plant and the obligations of Great Plains
under the Agreement. The terms and conditions of the Agreement are incorporated
herein by reference.

 

 

4.                                       Funds under this Letter of Credit are
available to NSC in accordance with and against its Draft and Draw Certificate,
each dated the date of presentation and executed by an officer of NSC,
referring to the number of this Letter of Credit and presented along with the
original Letter of Credit at our office at 225 South Main Avenue, Sioux Falls,
South Dakota 57104 during normal banking hours on or prior to the Expiration
Date or any extension thereof. NSC warrants and represents to the Bank that it
has assigned or will assign its rights to the proceeds of this Letter of Credit
to Tetra Financial Group. Within 48 hours following presentation of the Draft,
Draw Certificate and original Letter of Credit, the funds drawn shall be
payable jointly by the Bank to NSC and Tetra Financial Group.

 

5.                                       This Letter of Credit sets forth in full the
terms of our undertaking, and such undertaking shall not in any way be modified
or amended, without the consent of the Bank, except as to the completion of the
Draft and Draw Certificates referred to herein.

 

	
   

  	
  HOME FEDERAL BANK

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By

  	
     /s/ David Brown

  	
   

  	
   

  	
   

  
	
   

  	
  Its

  	
     Senior Vice President

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  AGREED
  AND ACCEPTED

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  This
  17 day of February, 2006.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NORTHWESTERN
  SERVICES CORPORATION

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By

  	
    /s/
  Michael J. Hanson

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Its

  	
    President &
  CEO

  	
   

  	
   

  	
   

  	
   

  	
   

  
										

 

 

Appendix 1

 

DRAFT

 

Date:

 

To:                               Home Federal Bank

225 South Main Avenue

Sioux Falls, SD 57104

 

Within 48 hours of presentation of this
Draft, a signed and completed Draw Certificate and the original Letter of
Credit, PAY JOINTLY TO THE ORDER OF NorthWestern Services Corporation (successor
by merger to Northwestern Energy Corporation) and Tetra Financial Group the sum
of $                   under
that certain Natural Gas Distribution Delivery Agreement between NorthWestern
Energy Corporation and Great Plains Ethanol, LLC dated September 2, 2002.

 

Drawn under Fourth Amended and Restated Irrevocable
Standby Letter of Credit No. 1158 dated February 16, 2006.

 

	
   

  	
  NORTHWESTERN SERVICES

  
	
   

  	
  CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
  Its

  	
   

  	
   

  

 

3

 

Appendix 2

 

DRAW
CERTIFICATE

 

Letter of Credit No. 1158

 

Date:

 

To:                               Home Federal Bank

225 South Main Avenue

Sioux Falls, SD 57104

 

The undersigned, a duly
authorized officer of NorthWestern Services Corporation (“NSC,” successor by
merger to NorthWestern Energy Corporation), certifies to Home Federal Bank
that:

 

1.                                       NSC is making a draw under the Fourth Amended
and Restated Inevocable Standby Letter of Credit No. 1158 dated February 16,
2006 with respect to (check the applicable box):

 

o a
failure by Great Plains to meet the Minimum Annual Obligation for 20
established under the Natural Gas Distribution Delivery Agreement between
NorthWestern Energy Corporation and Great Plains dated September 2, 2002
(the “Agreement”),

 

o a
failure by Great Plains to meet the Minimum Total Obligation established under
the Agreement, or

 

o the termination of the Agreement by Great
Plains for any reason other than for NSC’s refusal to perform its
obligations under the Agreement.

 

2.                                       The amount of the Draft accompanying this
Certificate is $                 , such
sum being (check the applicable box):

 

o the
remaining Minimum Annual Obligation for 20    or

 

o the entire outstanding balance of Great
Plains’ Minimum Total Obligation in accordance with the terms of the Agreement.

 

4

 

3.                                       The amount of the Draft accompanying this
Certificate was computed in accordance with the terms and conditions of the
Agreement and does not exceed, when combined with any prior amount drawn by
NSC, the amount available to be so drawn.

 

	
   

  	
  NORTHWESTERN SERVICES

  
	
   

  	
  CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
  Its

  	
   

  	
   

  

 

5Exhibit 10.23

 

HOME FEDERAL
BANK

PROMISSORY
NOTE MODIFICATION AGREEMENT

 

	
  Modification
  #4386

  	
   

  	
   

  	
  Loan
  #9206756

  

 

This Agreement is made as of February 16, 2006, between Home
Federal Bank having its office at 225 South Main Avenue, Post Office Box 5000,
Sioux Falls, South Dakota 57117-5000 (“Lender”) and Great Plains Ethanol LLC,
27716 462nd Ave., Chancellor, SD 57015 (“Borrower”).

 

RECITAL 5:

 

A.                                   Lender is the holder
of a Promissory Note of Borrower dated February 28, 2003 payable to the
Lender in the original principal amount not to exceed $1,600,000.00 (the “Loan”).

 

B.                                     Lender is willing
to modify payment terms of the Loan evidenced by the Loan Documents in the
manner set forth below. These proposed changes are requested by and acceptable
to Borrower. Borrower acknowledges that the Loan Documents shall remain the
legal and binding obligation of Borrower, endorsers and guarantors, free of any
claim, defense or offset.

 

Accordingly, In consideration of the premises
and other good and valuable consideration, each paid to the other, the parties
agree as follows:

 

1.                                       Effective as of,
N/A and until the Loan is fully paid or Lender changes the number of basis
points or the Index, whichever is the first to occur, the unpaid balance of the
Loan shall bear interest at a variable rate of N/A basis points in excess of
the N/A (“Index”). Lender at its discretion, may change
the number of basis points or Index upon thirty (30) days’ prior written notice
to Borrowers. 

 

2.                                       The unpaid
principal balance of the Loan and Interest thereon shall be paid in full on or
before March 1, 2007.

 

3.                                       The maximum
amount of the Loan is changed to and shall not exceed $960,000.00.

 

4.                                       The Loan
Documents are amended to the extent necessary to reflect the changes set forth
above. No other amendments are made to the Loan Documents. Except as amended
herein, the terms and conditions contained in the Loan Documents, and the
Related Documents described therein, shall continue to govern the relationship
of the parties.

 

5.                                       It is understood
and agreed by the parties that this Agreement shall not operate as a novation
of the Loan Documents or the Loan,

 

 

6. A Loan Modification Fee of $2,812.50 will
be charged.

 

IN WITNESS WHEREOF, the parties hereto each duly executed this
Agreement as of the day and year first above written.

 

	
   

  	
  HOME FEDERAL
  BANK

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  BY:

  	
  Terry Cleberg

  	
   

  	
   

  
	
   

  	
  ITS:

  	
  VP

  	
   

  	
   

  
							

 

 

	
   

  	
  BORROWER:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  GREAT PLAINS
  ETHANOL LLC

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  /s/ Darrin Ihnen

  	
   

  
	
   

  	
  DARRIN IHNEN, PRESIDENT

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