Document:

Exhibit

Amendment No. 18462590SLA-C

AMENDMENT TO CREDIT AGREEMENT
THIS AMENDMENT is entered into as of January 28, 2020, between SOUTH DAKOTA SOYBEAN PROCESSORS, LLC, Volga, South Dakota, a limited liability company (the "Borrower"), and COBANK, ACB, a federally-chartered instrumentality of the United States ("Lender"). Capitalized terms used and not defined herein will have the meanings assigned to such terms in the Agreement (as defined below).
RECITALS
The Borrower and Lender are parties to Credit Agreement Number 18462590SLA dated as of December 28, 2016 (such agreement, as may be amended, is hereinafter referred to as the "Agreement"). The Borrower and Lender now desire to amend the Agreement. For that reason, and for valuable consideration (the receipt and sufficiency of which are hereby acknowledged), the Borrower and Lender agree as follows:
1.    Section 6.1 under Article 6 of the Agreement and will amended by adding Subsection 6.1(h) as follows:
ARTICLE 6    Negative Covenants.  Unless otherwise agreed to in writing by Lender, while this Agreement is in effect, the Borrower will not and will not permit its Subsidiaries to:
6.1     Other Indebtedness.  Create, incur, assume or allow to exist, directly or indirectly, any indebtedness or liability for borrowed money (including trade or bankers' acceptances), letters of credit, or for the deferred purchase price of property or services (including leases that should be accounted for on the books of the lessee in accordance with the Accounting Standards), except for:
(h)    those operating leases, insofar as they are considered indebtedness in accordance with the Accounting Standards, as allowed for in Section 6.11 herein.
2.Section 6.5 under Article 6 of the Agreement is amended and restated to read as follows:
ARTICLE 6    Negative Covenants.  Unless otherwise agreed to in writing by Lender, while this Agreement is in effect, the Borrower will not and will not permit its Subsidiaries to:
6.5    Loans and Investments.  Make any loan or advance to any person or entity, or purchase any capital stock, obligations or other securities of, make any capital contributions to, or otherwise invest in any person or entity, or form or create any partnerships or joint ventures, except:
(a)trade credit extended in the ordinary course of business.
(b)equity in, or obligation of, Lender.
(c)investments by the Borrower in the stock or other equities of Prairie AquaTech, LLC, Prairie AquaTech Manufacturing, LLC, and/or Prairie AquaTech Investments, LLC, provided that the aggregate amount of all such investments may not exceed $10,000,000.00 at any one time outstanding, plus future retained earnings.
(d)investments existing as of the date hereof.

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	3.
	Section 7.1 under Article 7 of the Agreement is amended and restated to read as follows:

ARTICLE 7    Financial Covenants. Unless otherwise agreed to in writing by Lender, while this Agreement is in effect:
7.1    Working Capital.  The Borrower will have at the end of each period as set forth below an excess of consolidated current assets over consolidated current liabilities of not less than the amount shown next to such period set forth below, except that in determining: (a) current assets, any amount available under any revolving term promissory note hereunder (less the amount that would be considered a current liability if fully advanced) may be included; and (b) current liabilities, any current portion of previously designated operating leases reclassified as capital leases are to be excluded, (all as determined in accordance with the Accounting Standards).
	
		
	Period
	Working Capital

	fiscal year of the Borrower
	$12,500,000

	for each other period for which financial statements are required to be furnished pursuant to this agreement
	$10,000,000

4.Except as expressly amended hereby, all of the representations, warranties, terms, covenants and conditions contained in the Agreement and each other Loan Document will remain unamended and otherwise unmodified and in full force and effect.
5.This Amendment, each Promissory Note and any other Loan Document may be executed in counterparts, each of which will constitute an original, but all of which when taken together will constitute a single contract. Delivery of an executed counterpart of a signature page of this Amendment by facsimile or other electronic means will be as effective as delivery of a manually executed counterpart of this Amendment.
SIGNATURE PAGE FOLLOWS

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SIGNATURE PAGE TO AMENDMENT TO CREDIT AGREEMENT
IN WITNESS WHEREOF, the parties hereto, by their duly authorized officers, have executed this Agreement.
	
				
	 
	SOUTH DAKOTA SOYBEAN PROCESSORS, LLC

	 
	 
	 
	 

	 
	By:
	 
	/s/ Mark Hyde

	 
	 
	 
	 

	 
	Name:
	 
	Mark Hyde

	 
	 
	 
	 

	 
	Title:
	 
	CFO

3

SIGNATURE PAGE TO AMENDMENT TO CREDIT AGREEMENT
IN WITNESS WHEREOF, the parties hereto, by their duly authorized officers, have executed this Agreement.
	
				
	 
	COBANK, ACB

	 
	 
	 
	 

	 
	By:
	 
	/s/ Patricia Machado

	 
	 
	 
	 

	 
	Name:
	 
	Patricia Machado

	 
	 
	 
	 

	 
	Title:
	 
	Assistant Corporate Secretary

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Exhibit A
Compliance Certificate
As of Month Ended ____________________
	
	
	This Certificate is delivered pursuant to the Credit Agreement dated December 28, 2016 (as amended, restated, or otherwise modified from time to time, the "Agreement"), by and among South Dakota Soybean Processors and CoBank, ACB. All terms used in this certificate have the meanings given to them in the Agreement.

	
										
	Working Capital (Interim)

	 
	 
	Required to be no less than
	$
	10,000,000
	

	 
	 

	 
	 
	 
	 
	 
	 

	 
	Current Assets
	 
	 
	 

	(-)
	Current Liabilities
	 
	 
	 

	(+)
	Current portion of operating lease(s) on balance sheet
	 
	 
	 

	(+)
	Term revolver availability (less current portion)
	 
	 
	 

	Working Capital
	 
	 
	$
	—
	

	 
	Compliance (Yes/No)
	 
	 
	 

	
										
	Working Capital (Fiscal Year End)

	 
	 
	Required to be no less than
	$
	12,500,000
	

	 
	 

	 
	 
	 
	 
	 
	 

	 
	Current Assets
	 
	 
	 

	(-)
	Current Liabilities
	 
	 
	 

	(+)
	Current portion of operating lease(s) on balance sheet
	 
	 
	 

	(+)
	Term revolver availability (less current portion)
	 
	 
	 

	Working Capital
	 
	 
	$
	—
	

	 
	Compliance (Yes/No)
	 
	 
	 

	
										
	Debt Service Coverage (Fiscal Year End)

	 
	 
	Required to be no less than
	1.20:1.00
	 
	 

	 
	 
	 
	 
	 
	 

	Consolidated Net Income (after tax)
	 
	 
	 

	(+)
	Depreciation and amortization
	 
	 
	 

	(-)
	Non-Cash Patronage Income
	 
	 
	 

	(-)
	Extraordinary Gain (+ Loss)
	 
	 
	 

	(-)
	Gain on Asset Sale (+ Loss)
	 
	 
	 

	=
	Available Cash
	$
	—
	

	 
	 

	/
	$4,000,000
	$
	4,000,000
	

	 
	 

	Debt Service Coverage Ratio
	 
	 
	$
	—
	

	 
	Compliance (Yes/No)
	 
	 
	 

	
					
	PRINCIPAL FINANCIAL OFFICER'S CERTIFICATION

	The undersigned has reviewed the financial statements pertaining to the above calculations, and based on this review, certify to the best of my knowledge the financial statements as accurate and complete for the period reflected. The undersigned also hereby certifies that the foregoing is a correct statement of financial condition and compliance as of the month end stated above, and that, during such month, there existed at no time any condition or event which constituted an event or which, after notice or lapse of time or both, would constitute an event of default in the performance of any covenants contained in the Agreement.

	
						
	 
	AUTHORIZED SIGNATURE        (or Electronic Signature)
	 
	DateExhibit

Loan No. 18462590S01-D

AMENDED AND RESTATED REVOLVING CREDIT PROMISSORY NOTE
THIS AMENDED AND RESTATED REVOLVING CREDIT PROMISSORY NOTE (this "Promissory Note") to the Credit Agreement dated December 28, 2016 (such agreement, as may be amended, hereinafter referred to as the "Credit Agreement"), is entered into as of January 28, 2020 between COBANK, ACB, a federally-chartered instrumentality of the United States ("Lender") and SOUTH DAKOTA SOYBEAN PROCESSORS, LLC, Volga, South Dakota, a limited liability company (together with its permitted successors and assigns, the "Borrower"). Capitalized terms not otherwise defined in this Promissory Note will have the meanings set forth in the Credit Agreement.
RECITALS
(A)This Promissory Note amends, restates, replaces and supersedes, but does not constitute payment of the indebtedness evidenced by, the promissory note set forth in the Amended and Restated Revolving Credit Promissory Note numbered 18462590S01-C, dated as of November 23, 2018, between Lender and the Borrower.
SECTION 1.    REVOLVING CREDIT COMMITMENT.  On the terms and conditions set forth in the Credit Agreement and this Promissory Note, Lender agrees to make loans to the Borrower during the period set forth below in an aggregate principal amount not to exceed $28,000,000.00, at any one time outstanding (the "Commitment"). Within the limits of the Commitment, the Borrower may borrow, repay and re-borrow.
SECTION 2.    PURPOSE.  The purpose of the Commitment is to finance the operating needs of the Borrower.
SECTION 3.    TERM.  The term of the Commitment will be from the date hereof, up to and including December 1, 2020, or such later date as Lender may, in its sole discretion, authorize in writing (the "Term Expiration Date"). Notwithstanding the foregoing, the Commitment will be renewed for an additional year only if, on or before the Term Expiration Date, Lender provides to the Borrower a written notice of renewal for an additional year (a "Renewal Notice"). If on or before the Term Expiration Date, Lender grants a short-term extension of the Commitment, the Commitment will be renewed for an additional year only if Lender provides to the Borrower a Renewal Notice on or before such extended expiration date. All annual renewals will be measured from, and effective as of, the same day as the Term Expiration Date in any year.
SECTION 4.    LIMITS ON ADVANCES, AVAILABILITY, ETC.  The loans will be made available as provided in Article 2 of the Credit Agreement.
SECTION 5.    INTEREST.  The Borrower agrees to pay interest on the unpaid balance of the loan(s) in accordance with the following interest rate option(s):
(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 2.200% (the "LIBOR Margin") above the higher of: (1) zero percent (0.000%); or (2) the rate reported at 11:00 a.m. London time for the offering of one (1)-month U.S. dollars deposits, by Bloomberg Information Services (or any successor or substitute service providing rate quotations comparable to those currently provided by such service, as determined by Lender from time to time, for the purpose of providing quotations of interest rates applicable to dollar deposits in the London interbank market) on the first U.S. Banking Day (as hereinafter defined) in each week, with such rate to change weekly on such day. The rate will be reset automatically, without the necessity of notice being provided to Lender, the Borrower, or any other party, on the first U.S. Banking Day of each succeeding week, and each change in the rate will be applicable to all balances subject to this option. Information about the then-current rate will be made available upon telephonic request. For purposes hereof: (a) "U.S. Banking Day" means a day on which Lender is open for business and banks are open for business in New York, New York; (b) "Eurocurrency Liabilities" will have the meaning as set forth in "FRB Regulation D"; and (c) "FRB Regulation D" means Regulation D as promulgated by the Board of Governors of the Federal Reserve System, 12 CFR Part 204, as amended.

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Interest will be calculated on the actual number of days each loan is outstanding on the basis of a year consisting of 360 days and will be payable monthly in arrears by the 20th day of the following month or on such other day as Lender will require in a written notice to the Borrower ("Interest Payment Date").
SECTION 6.    PROMISSORY NOTE. The Borrower promises to repay the unpaid principal balance of the loans on the Term Expiration Date, as the term may be extended from time to time.
In addition to the above, the Borrower promises to pay interest on the unpaid principal balance of the loans at the times and in accordance with the provisions set forth herein.
SECTION 7.    SECURITY. The Borrower's obligations hereunder and, to the extent related hereto, under the Credit Agreement, will be secured as provided in Section 2.3 of the Credit Agreement.
SECTION 8.    FEES.
(A)Commitment Fee. In consideration of the Commitment, the Borrower agrees to pay to Lender a commitment fee on the average daily unused available portion of the Commitment at the rate of 0.200% per annum (calculated on a 360-day basis), payable monthly in arrears by the 20th day following each month. Such fee will be payable for each month (or portion thereof) occurring during the original or any extended term of the Commitment.
(B)Letter of Credit Fee(s): The Borrower agrees to pay to Lender any fees, administrative expenses, and other customary charges that Lender may charge or incur from time to time in connection with the issuance, maintenance, amendment (if any), assignment or transfer (if any), negotiation, and administration of the letter of credit. In addition, the Borrower agrees to pay to Lender:
1.Issuance Fee.  Upon the issuance of the letter of credit, an issuance fee equal to $1,000.00.
2.Commission Fee.  A commission fee equal to the LIBOR Margin multiplied by the face amount of the letter of credit (computed on the basis of a year of 360 days and actual days elapsed), which fee shall be payable quarterly in arrears on the 20th of each calendar quarter following issuance of the letter of credit, and on the last day of the term of the Commitment.
SECTION 9.    LETTERS OF CREDIT. If agreeable to Lender in its sole discretion in each instance, in addition to loans, the Borrower 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 Lender's receipt of a duly completed and executed copy of Lender's then current form of Application and Reimbursement Agreement or, if applicable, in accordance with the terms of any CoTrade Agreement between the parties, and will reduce the amount available under the Commitment by the maximum amount capable of being drawn under such letter of credit. Any draw under any letter of credit issued hereunder will be deemed a loan under the Commitment and will be repaid in accordance with this Promissory Note. Each letter of credit must be in form and content acceptable to Lender and must expire no later than the maturity date of the Commitment.

SIGNATURE PAGE FOLLOWS

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SIGNATURE PAGE TO PROMISSORY NOTE
IN WITNESS WHEREOF, the parties have caused this Promissory Note to the Credit Agreement to be executed by their duly authorized officer(s).
	
				
	 
	SOUTH DAKOTA SOYBEAN PROCESSORS, LLC

	 
	 
	 
	 

	 
	By:
	 
	/s/ Mark Hyde

	 
	 
	 
	 

	 
	Name:
	 
	Mark Hyde

	 
	 
	 
	 

	 
	Title:
	 
	CFO

3

SIGNATURE PAGE TO PROMISSORY NOTE
IN WITNESS WHEREOF, the parties have caused this Promissory Note to the Credit Agreement to be executed by their duly authorized officer(s).
	
				
	 
	COBANK, ACB

	 
	 
	 
	 

	 
	By:
	 
	/s/ Patricia Machado

	 
	 
	 
	 

	 
	Name:
	 
	Patricia Machado

	 
	 
	 
	 

	 
	Title:
	 
	Assistant Corporate Secretary

4

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