Document:

Exhibit 10.1

AMENDMENT NO.1 TO

WATER AND FUEL OIL AGREEMENT

THIS AMENDMENT NO. 1 TO WATER AND FUEL OIL AGREEMENT (this “Amendment”) is made as of March 21, 2007 (the “Effective
Date”), by and among Otter Tail Corporation, d/b/a Otter Tail Power Company, as
operating agent (“Offer Tail”) for Montana-Dakota Utilities Co., a division of
MDU Resources Group, Inc., NorthWestern Energy, a division of NorthWestern
Corporation, and Otter Tail Power Company (individually “Party” or “Owner” and
collectively the “Parties” or “Big Stone Plant Co-Owners”), having its
principle office at the offices of Otter Tail Power company, 215 South Cascade
Street, City of Fergus Falls, State of Minnesota, and Northern Lights Ethanol,
LLC, having its principal office at 1303 East Fourth Avenue, Milbank, South
Dakota (“Northern Lights”).

RECITALS

WHEREAS, the Parties desire to amend, as of the Effective Date, that certain
Water and Fuel Oil Agreement among the Parties, dated as of August 15, 2001
(the “Agreement”), to reflect changes to the amount of water available to
Northern Lights’ ethanol facility and supporting elements located near the Big
Stone Generation Plant (the “Project”) as a result Northern Lights’ expansion.

NOW, THEREFORE,
in consideration of the agreements and covenants set forth herein, and other
good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, and intending to be legally bound by this Amendment, the Parties
covenant and agree as follows:

1.             Amendment.  The
Agreement is amended as follows:

a.             Attachment A:

1) Attachment A is hereby
amended to provide that the TDS parameter of “<1,000 mg/liter” is hereby
replaced with “<10,000 mg/liter.”

2)     In the first sentence of Attachment A, the
words “Cooling Pond” shall be replaced with the words “Holding Pond.”

b.             Attachment B:

The Attachment B, attached
to the Agreement, is hereby replaced by the Attachment B that is attached to
this Amendment.

c.             Section Two shall be deleted in its entirety
and replaced by the following:

“Section Two. Distilled Water and Cooling Pond Water:

2.1           Otter Tail will:

a.             Provide to the Project up to 300 gallons per
minute (“gpm”) of distilled water from its brine concentrator and/or makeup
pond upon a schedule which will permit Northern Lights to maintain continuous
operation, with the Project providing storage capacity at its location of
40,000 gallons of distilled water.

b.             Provide to the Project up to 400.gpm of water
from its Cooling Pond after Northern Lights’ first uses an annual average of
250 gpm of distilled water.  Said Cooling
Pond water shall be provided on an “as is” basis.

c.             Determine the amount of distilled water and
Cooing Pond water actually provided to the Project and bill Northern Lights for
water delivered to the Project at the rates set forth in Attachment B attached
hereto and made a part hereof.

 2
 

2.2           Northern Lights will:

a.             Construct, maintain and pay all costs
associated with the construction and maintenance of pumps and pipelines to
transport water from the Big Stone Plant brine concentrator, makeup pond, and
Cooling Pond to the Project.

b.             Install and maintain, at Northern Lights’
sole expense, a water meter and measure the water received by Northern Lights
from Otter Tail’s brine concentrator, makeup pond, cooling pond.

c.             Pay to Otter Tail, within 30 days of receipt
of Otter Tail’s invoice for water received from the brine concentrator, makeup
pond, and/or Cooling Pond, at the rates set forth in Attachment B.

d.             Use all water for industrial use pursuant to
the Big Stone Plant Water Appropriation Permit.

e.             Maintain a storage capacity for distilled
water of at least 40,000 gallons.

f.              Grant Otter Tail access to inspect water
meter and make measurement as described in 2.1.

d.             A new Section Six is added. Section Six shall
provide as follows:

“Section
Six. In case of
prolonged drought, Otter Tail may need to curtail distilled and/or Cooling Pond
water to the Project.  Otter Tail, at its
sole discretion, may take this action whenever Big Stone Lake level drops below
967 feet Mean Sea Level for more than 90 continuous days.”

2.             Continuing Effect;
Ratification.  Except as expressly amended herein, all other
terms, covenants and conditions contained in the Agreement shall continue to
remain unchanged and in full force and effect and are hereby ratified and
confirmed.

3.             Governing Law.  This
Amendment shall be interpreted and enforced in 

 3
 

accordance with the laws of the State of South Dakota, notwithstanding
any conflict of law provision to the contrary.

4.             Captions.  All
titles, subject headings, Section titles and similar items are provided for the
purpose of reference and convenience and are not intended to affect the meaning
of the content or scope of this Amendment.

5.             Counterparts.  This
Amendment may be executed in any number of counterparts and by different
parties hereto in separate counterparts, each of which, when so executed and
delivered, shall be deemed to be an original, and all of which, taken together,
shall constitute but one in the same instrument.

6.             Authority.  Each
signatory to this Amendment represents that he/she has the authority to execute
and deliver this Amendment on behalf of the Party set forth above its
signature.

[SIGNATURE PAGES FOLLOW -

THE REMAINDER OF THIS PAGE IS INTENTIONALLY BLANK]

 4
 

IN WITNESS WHEREOF, the Parties hereto have caused their names to be
hereunto subscribed by their officers, intending thereby that this Amendment
shall be effective as of the Effective Date.

	
  

  	
  OWNERS:

  
	
   

  	
   

  
	
   

  	
  OTTER TAIL
  CORPORATION

  
	
   

  	
  Doing business
  as Otter Tail Power Company,

  
	
   

  	
  As Agent for
  Co-Owners

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jeffrey D.
  Endrizzi

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Printed Name:

  	
  JEFFREY D.
  ENDRIZZI

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
  PLANT MANAGER

  	
   

  
								

 

 5
 

IN WITNESS WHEREOF, the Parties hereto have caused theft names to be
hereunto subscribed by their officers, intending thereby that this Amendment
shall be effective as of the Effective Date.

	
  

  	
  NORTHERN LIGHTS ETHANOL, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Delton
  Strasser

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Printed Name:

  	
  DELTON STRASSER

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
  PRESIDENT

  	
   

  
								

 

 6

ATTACHMENT B

RATES

Water

Northern Lights’ shall pay for Distilled water at the rate of $4.00 per
1,000 gallons.

Water from the Cooling Pond shall be billed initially at $1.00 per
1,000 gallons.  The rates for distilled
water and Cooling Pond water are subject to an annual adjustment as follows:
The water charge shall be adjusted by the change in the average Btu cost of
fuel to the Big Stone Plant with that change multiplied by 50%.

Also, Northern Lights first shall use an annual average of 250 gpm of
distilled water before drawing water from the Big Stone Cooling Pond.

Rail
Access

Rail access shall be assessed initially at $7.50 per car brought across
the Big Stone spur line to the Northern Lights’ spur line. (Across spur line
implies round trip.) Rail access assessment shall be subject to adjustment
every five year period as follows:

The rail access assessment shall be adjusted upwards by 10% every five
years.Exhibit
10.2

CORN AND NATURAL GAS PRICE RISK MANAGEMENT AGREEMENT

THIS CORN and NATURAL GAS PRICE RISK MANAGEMENT
AGREEMENT is made and
entered into as of the 1st day of
April, 2007, by and between Broin Management, LLC, a Minnesota limited
liability company (“Manager”) and Northern Lights Ethanol, LLC an South Dakota
limited liability company (“Company”).

WHEREAS, Company owns an ethanol production plant near Big Stone City, South
Dakota (the ‘Plant”); and

WHEREAS, Manager is in the business of management and operation of ethanol
production facilities, including the Plant; and

WHEREAS, Company and Manager have engaged the services of Manager to manage
the Plant pursuant to the Management Agreement dated April 20th, 2005 (the “Management
Agreement”); and

WHEREAS, Company desires to engage the services of Manager to provide corn and
natural gas price risk management services not addressed by the Management
Agreement between Manager and Company, and Manager desires to provide such
additional services on the terms and conditions hereinafter described.

NOW, THEREFORE, in consideration of mutual covenants
contained herein, the parties agree as follows:

Rights and Obligations of Manager

General Rights and Obligations. Manager shall have the responsibility and authority to take all
action necessary or appropriate to engage in hedging and price risk management
relating to corn and natural gas requirements including, without limitation,
the power and authority to:

(a)           Trade futures, options, cash corn contracts, natural gas futures and
other contracts with the intention of controlling grain and natural gas costs,
reducing market exposure, and protecting and/or enhancing plant operating
margins in corn, natural gas and other commodities for any and all ethanol
plants managed by Manager including Company’s Plant.

 1
 

(b)           Devise and implement strategies for carry protection and basis
protection;

(c)           Recommend strategies for fiat price protection to Company’s governing
board and enact all flat price strategies approved by the governing board;

(d)           Recommend strategies to the Company’s commodity manager for dialing and
forward pricing, price strategies and related hedging;

(e)           From time to time enter into trades to reduce market exposure and
market risk in other co-products or commodities relative to plant usage or
production;

(f)            Hire such employees and independent
contractors as Manager shall determine to be reasonably necessary to the
foregoing; and

(g)           Carry on any other activities necessary to, in connection with, or
incidental to the foregoing.

Storage/Forward Contract Hedging. Manager will recommend storage and forward
contract hedging strategies to Company’s commodity manager. At no time will
these strategies result in the flat pricing of more than 25% of one year’s
projected corn usage without the approval of Company’s governing board. Company
will establish a futures trading account with Managers assistance for the
purpose of flat price/storage/ forward contract hedging.

Flat Price Hedging.  Manager will recommend flat price
strategies to Company’s governing board for flat price hedging in excess of 25%
of one year’s projected corn usage as it deems necessary.  Company’s governing board will review these
strategies and direct Manager to implement any strategies that are approved.
Manager will promptly enact any flat price hedging strategies directed by
Company.

Independent Contractor Status. Manager in the performance of its duties under this Agreement shall
occupy the position of an independent contractor with respect to Company.
Nothing contained herein shall be construed as making the parties hereto
partners or joint venturers, nor, except as expressly provided herein,
construed make Manager an employee of Company.

 2
 

Reports Issued by Manager

The following reports will be issued to Company by Manager:

	
  Daily Reports (To
  Commodity Manager):

  
	
  Market Update—Bid Sheet

  
	
  Market Summary and Commentary

  
	
  Weekly Reports
  (To General Manager)

  
	
  Pool Position and Profitability

  
	
  DDGS market Roundup

  
	
  Natural Gas market Roundup

  
	
  Quarterly
  Reports (To the Board of Directors):

  
	
  Quarterly market and Trading Update

  
	
  Quarterly DDGS Update

  
	
  Quarterly Natural Gas Update

  

 

Duties of Company

Company hereby agrees to cooperate with Manager in the performance of
Manager’s duties and responsibilities under this Agreement, to act in good
faith, and to do all reasonable things necessary to aid Manager’s performance
as an independent contractor under the terms of this Agreement, and the Price
Risk Management Fee as defined and outlined in the Price Risk Management Fee
section following this section. Company’s governing board may create a
committee to perform Company’s duties and responsibilities under this
Agreement.

Price Risk Management Fee

Price Risk Management Fee.  Company shall pay Manager a
price risk management fee of $59,580 per year, payable in quarterly
installments of $14,895 due on the first day of each calendar quarter. It is
understood and agreed that this fee shall be billed by and is payable to
Manager’s Price Risk Consultant. In the event this Agreement commences other
than on the first date of a quarter, the first quarterly installment shall be
prorated. This fee is subject to modification in the case of plant expansions
or increases in corn usage.

 3
 

Effective Date: Term: Termination

Effective Date.
This Agreement shall be effective as of the date first set forth above.

Term. Except
as is set forth below in the section entitled “Termination”, the term of this
Agreement shall be for a period of five (5) years commencing with the first
payment. This Agreement shall be automatically extended for an additional five
(5) year term following the end of the original five (5) year term, unless
either party gives written notice of non-renewal at least thirty (30) days
prior to the end of the original term, This renewal provision shall apply in
the same manner for all subsequent expiring terms, Therefore, every five (5)
years this Agreement shall be either automatically extended unless proper
notice of non-renewal is given by either party as provided herein.

Termination.
Either party has the right to terminate this Agreement with or without cause as
of the annual anniversary date of this Agreement by giving written notice to
the other party of such termination. Such written notice of termination shall
be given not more than ninety (90) days nor less than thirty (30) days before
the annual anniversary date. Upon any such termination, Manager shall have the
right to continue to provide price risk management services until the end of
the then current year. Likewise, upon any such termination, Company shall have
the right to Manager’s price risk management services until the end of the then
current year.

Limitation of Liability

Company acknowledges that the futures and commodities’ markets are
volatile and subject to events and market movements over which Manager and
Manager’s Price Risk Consultant have no control, Accordingly, Manager and
Manager’s Price Risk Consultant shall not be held liable by Company for any losses
related to the trading activities or price risk management services of Manager
and Manager’s Price Risk Consultant relating to this Agreement so long as
Manager and Manager’s Price Risk Consultant have acted in good faith and in- a
manner they reasonably believed to be in the best interests of Company. The
parties acknowledge that the price risk management services to be rendered
pursuant to this Agreement may affect Company’s profitability. Company shall
indemnify and hold harmless Manager and Manager’s Price Risk Consultant from
and against all liabilities, suits, claims, damages, costs, judgments and
attorneys’ fees of Manager and Manager’s Price Risk Consultant resulting from
any of the foregoing brought by Company’s members or third parties related to
the trading activities or price risk management services of Manager and Manager’s
Price Risk so long as Manager and Manager’s Price Risk Consultant have acted in
good faith and in a manner they reasonably believed to be in the best interests
of Company. Company and Manager agree to cooperate with each other should
either or both be named in a suit relating to this Agreement.

 4
 

Waiver of Jury Trial

Manager and Company irrevocably waive any and all rights to trial by
jury in any legal proceeding arising out of or relating to this Agreement or
the transactions and relationships of the parties contemplated hereby or
thereby.

Assignment

This Agreement shall be assignable by either party upon the written
consent of the other party hereto.

Miscellaneous

Headings.  The headings contained herein are for
convenience only and are not intended to define or limit the scope of intent of
any provisions of this Agreement.

Governing Law.  The validity of
this Agreement, the construction of its terms and the interpretation of the
rights and duties of the parties hereto shall be governed by the laws of the
State of Minnesota. The Circuit Court for the Second Judicial Circuit, County
of Minnehaha, State of South Dakota, shall be the sole and exclusive
jurisdiction and venue for the resolution of any disputes arising from or
relating to this Agreement.

Notices. Any
notice required or permitted herein to be given shall be given in writing and
shall be delivered by United States registered or certified mail, return
receipt requested, to the president of Manager and president or chairman of
Company, as the case may be, at the addresses set forth below or such address
as Company or Manager shall provide notice of from lime to time during the term
of this Agreement.

	
  Company:

  	
  Northern Lights Ethanol, LLC

  
	
   

  	
  48416 144th St.

  
	
   

  	
  Big Stone City,
  SD 57216

  
	
   

  	
  Attention: Delton
  Strasser, President

  
	
   

  	
   

  
	
  Manager:

  	
  Broin Management, LLC

  
	
   

  	
  2209 East 57th Street North

  
	
   

  	
  Sioux Falls, SD
  57104

  
	
   

  	
  Attention: Mr.
  Jeffrey S. Broin

  

 

Successors.
This Agreement shall be binding upon and inure to the benefit of the respective
parties and their permitted assigns and successors in interest.

 5
 

Waivers. No
waiver of any breach of any of the terms or conditions of this Agreement shall
be held to, be a waiver of any other subsequent breach; nor shall any waiver be
valid or binding unless the same shall be in writing and signed by the party
alleged to have granted the waiver.

Counterparts.
This Agreement may be executed in multiple counterparts all of which shall
constitute but one Agreement.

Amendment.
This Agreement may be amended with the written consent of Company and Manager.

Entire Agreement.  Except as otherwise described herein, this
Agreement is the entire Agreement between the parties relating to the corn
price risk management services.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the 26th day of
March, 2007.

	
  Company:

  	
  Manager:

  
	
  Northern Lights
  Ethanol, LLC

  	
  Broin Management, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Delton
  Strasser

  	
   

  	
  By:

  	
  /s/ James Moe

  	
   

  	
   

  
	
  Its President

  	
  Its Chief Operating officer

  
							

 

 6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}]]