Document:

Exhibit 10.1

 

 AMENDMENT TO THE

MASTER LOAN AGREEMENT

 

THIS AMENDMENT is entered
into as of October 4, 2012 between CoBANK, ACB ("Co Bank") and SOUTH DAKOTA SOYBEAN PROCESSORS, LLC, Volga, South Dakota
(the "Company").

 

BACKGROUND

 

CoBank and the Company are parties to a
Master Loan Agreement dated March 19, 2012 (such agreement 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.	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) $11,000,000.00 at the
end of each fiscal year of the Company; and (2) $9,000,000.00 at the end of each other period for which financial statements are
required to be furnished pursuant to Section 8(H) 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.

 

2.            Except
as set forth 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/ Tonya Butler	 	By:	/s/ Thomas J. Kersting
	 	 	 	 	 
	Title:	Assistant Corporate Secretary	 	Title:	CEO

 

    	 

    	 

    

 

Exhibit 10.1

 

COMPLIANCE CERTIFICATE

South Dakota Soybean Processors, LLC (18462590)

 

CoBank, ACB

ATTN: CIServices

P.O. Box 5110

Denver, Colorado 80217

 

or

 

CoBank, ACB

ATTN: CIServices

5500 South Quebec Street

Greenwood Village, Colorado 80111

 

The following is based on the reporting period ending (date):              _____________

 

Working Capital Calculation 

 

	 	A.  Consolidated Current Assets	$  __________
	 	B.  Consolidated Current Liabilities	<$__________>
	 	C. Add: Unadvanced Term Revolver*	$  __________

 

*Less any amount considered a current liability per GAAP and
not included

in "B" above.

 

	 	D. Working Capital for Covenant Reporting***	$___________

 

***Requirement is <$11.0 million for fiscal year and <$9.0
million for interim monthly reporting.

 

I have reviewed the above calculations and the certified consolidated
interim financial statement(s) dated as of ___________ and, based upon this review, hereby certify that to the best of my knowledge
the above calculations are accurate and com plete for the period reflected.

South Dakota Soybean Processors, LLC Volga, South Dakota

 

	 	South Dakota Soybean Processors, LLC
	 	Volga, South Dakota
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	Date:Exhibit 10.2

 

MONITORED REVOLVING
CREDIT SUPPLEMENT

 

THIS SUPPLEMENT
to the Master Loan Agreement dated March 19, 2012 (the "MLA"), is entered into as of October 4, 2012 between CoBANK,
ACB ("CoBank") and SOUTH DAKOTA SOYBEAN PROCESSORS, LLC, Volga, South Dakota (the "Company"), and amends
and restates the Supplement dated July 23, 2012 and numbered RIB051S01P.

 

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 anyone time outstanding, the following amounts during each commitment
period: (A) $50,000,000.00 during the period commencing on the date hereof and ending on and including April 30, 2013; and (B)
$40,000,000.00 during the period commencing on May 1, 2013 and ending on and including August 1, 2013 (the “Commitment”);
provided, however that the amount available under the Commitment shall not exceed the "Borrowing Base" (as calculated
pursuant to the Borrowing Base Report attached hereto as Exhibit A) on the date for which Borrowing Base Reports are required pursuant
to Section 6 below. 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.
The term of the Commitment shall be from the date hereof, up to and including August 1, 2013, or such later date as CoBank may,
in its sole discretion, authorize in writing.

 

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
LIBR 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 3.75% 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 vendor listed on BBA's official website on the first "U.S. Banking Day" [as hereinafter
defined] in each 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) "Eurocurrency Liabilities" shall
have the meaning as set forth in "FRB Regulation D;” and (3) "FRB Regulation D" shall mean Regulation D as
promulgated by the Board of Governors of the Federal Reserve System, 12 CFR Part 204, as amended.

 

    	 

    	 

    

 

Exhibit 10.2

 

(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 anyone time shall be ten.

 

The Company shall select the applicable
rate option at the lime 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 and 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 the unpaid principal balance of the loans on the last day of the term of the Commitment,
except that on May 1, 2013, 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 limes and in accordance with the provisions set forth in Section 4 hereof. This note replaces and supersedes,
but docs 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 Base 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. If on the date
for which a Borrowing Base Report is required 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.

 

    	- 2 -

    	 

    

 

Exhibit 10.2

 

SECTION 7.     Letters
of Credit. If agreeable to CoBank in its sale 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 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 forgoing 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 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 CoBank (to be held as cash collateral) an amount equal to such excess.

 

SECTION 8.     Security.
The Company’s obligations hereunder and, to the extent related hereto, the MLA, including with out limitation any future
advances under any existing mortgage or deed of trust, shall be secured as provided in the Security Section of the MLA.

 

SECTION 9.     Collateral
Inspections. In consideration of the loans made hereunder, the Company will permit CoBank or its representatives, agents or
independent contractors, during normal business hours or at such other times as CoBank and the Company may agree to: (A) inspect
or examine the Company's properties, books and records: (B) make copies of the Company's books and records: and (C) discuss the
Company's affairs, finances and accounts with its officers, employees and independent certified public accountants. Without limiting
the foregoing, the Company will permit CoBank, through an employee of CoBank or through an independent third party contracted by
CoBank, to conduct on an annual basis a review of the collateral covered by the Security Agreement. The Company further agrees
to pay to CoBank a collateral inspection fee designated by CoBank and reimburse CoBank all reasonable costs and expenses incurred
by CoBank in connection with such collateral inspection reviews performed by CoBank employees or its agents.

 

SECTION 10. 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 0.25% 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 11.         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.

 

    	- 3 -

    	 

    

 

Exhibit 10.2

 

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/ Tonya Butler	 	By:	/s/ Tom J. Kersting
	 	 	 	 	 
	Title:	Assistant Corporate Secretary	 	Title:	CEO

 

Signature Page for Monitored Revolving Credit
Supplement RIB051S01Q

 

    	- 4 -

    	 

    

 

Exhibit 10.2

 

SEASONAL BORROWING BASE REPORT

CoBank, ACB

 

	Name of Borrower	 	City, State:	 	Date of Period
	South Dakota Soybean 

Processors, LLC (18462590)	 	
         

        Volga, South Dakota
	 	 

 

PART A – ELIGIBLE RECEIVABLES

 

For purposes hereof, ELIGIBLE RECEIVABLES shall mean rights
to payment for goods sold and delivered or for services rendered which: (a) are not subject to any dispute, set-off, or counterclaim;
(b) are not owing by an account debtor that is subject to a bankruptcy, reorganization, receivership or like proceeding; ( c) are
not subject to a lien in favor of any third party, other than liens authorized by CoBank in writing which are subordinate to CoBank’s
lien; (d) are not owing by an account debtor that is owned or controlled by the borrower, (e) are not accounts due more than 30
days from invoice date, (f) are not accounts with balances past due more than 30 days, (g) are not deemed ineligible by CoBank.
For purposes thereof, CONTRACT RECEIVABLES shall mean all Accrued Grains & Losses on Open Purchase and Sale Contracts for grain
which are (a) are not in dispute, (b) are legally enforceable, and ( c) are not subject to a lien except in favor of CoBank.

 

	
         

        Eligible Receivables
	 	Amount	 	
        ADVANCED

        RATE
	 	 	 	
        ALLOWABLE

        ADVANCE
	 
	 	 	 	 	 	 	 	 	 	 
	Trade Receivables 0=3- Days	$	—	X	85	%	=	$	—	 
	Trade Receivables 31-60 Days	$	—	X	50	%	=	$	—	 
	Trade Receivables 61 Days and Over	$	—	X	0	%	=	$	—	 
	Other Receivables	$	—	X	0	%	=	$	—	 
	Net Liquidated Value of Brokerage Accounts	$	—	X	90	%	=	$	—	 
	 	 	 	 	 	 	 	 	 	 
	Net Contract Receivables for Old Crop Beans*	$	—	X	80	%	=	$	—	 
	Net Contract Receivables for New Crop Beans*	$	—	X	70	%	=	$	—	 
	Subtotal – Net Contract Receivables for Beans	$	—	 	 	 	 	$	—	 
	*Old crops ends September 30.  Net contract receivables are accrued gains & losses on open purchase and sales contracts.	 
	 	 	 	 	 	 	 	 	 	 
	TOTAL PART A	$	—	 	 	 	 	$	-	 

 

PART B – ELIGIBLE INVENTORY

 

For purposes hereof, ELIGIBLE INVENTORY shall mean inventory
which: (a) is of a type shown below; (b) is owned by the borrower and not held by the borrower on consignment of similar basis;
(c) is not subject to a lien except in favor of CoBank.

 

	Types of Eligible Inventory	 	Amount	 	Deduction	 	
        ADVANCE

        RATE
	 	 	 	
        ALLOWANCE 

        ADVANCE
	 
	Soybeans*	$	—	 	—	X	85	%	=	$	—	 
	Less: Grain Payables	 	 	$	—	X	85	%	=	$	—	 
	 	 	 	 	 	 	 		 	 	 	 
	Soybean Meals*	$	—	 	 	X	85	%	=	$	—	 
	Soybean Oils**	$	—	 	 	X	85	%	=	$	—	 
	Soybean Hulls**	$	—	 	 	X	75	%	=	$	—	 
	Other Inventory	$	—	 	 	X	0	%	=	$	—	 
	TOTAL PART B	$	—	 	 	 	 	 	 	$	—	 

  

* Valued at Bid Price FOB Volga, SD

**Valued at Market FOB Volga, SD

 

PART C — OBLIGATIONS

 

	Less:	 	OBLIGATIONS	 
	Book Overdraft (Bank overdraft net of cash available.)	$	—	 
	Demand Patron Notes/Deposits	$	—	 
	Accounts Payable Owed to Suppliers with PMSI Filings	$	—	 
	Outstanding Balance of CoBank Loan(s), (as of date of this report):	$	—	 
	CoBank Letters of Credit Issued (excluding North Western Services Crop. Letter of Credit)	$	—	 
	TOTAL PART C (NET OBLIGATIONS SUMMARY)	$	—	 
	 	 	 	 
	*EXCESS/OVERADVANCE (AS OF END OF PERIOD): Total A + B – C	$	—	 

 

*IF AN OVERADVANCE IS REPORTED ABOVE, PLEASE CONTACT YOUR
RELATIONSHIP MANAGER IMMEDIATELY WITH: 1) AN UPDATED BORROWING BASE REPORT, AND 2) SPECIFICS OF ALL PAYMENTS REMITTED SINCE END
OF PERIOD (CHECK NUMBERS, WIRE ROUTING NUMBERS, ETC.). FUNDS MUST BE REMITTED TO COBANK WITHIN 5 BUSINESS DAYS OF MONTH END.

 

I HEREBY CERTIFY THAT THIS INFORMATION IS CORRECT.

 

    	- 5 -

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