Exhibit 10.17
REVOLVING TERM LOAN SUPPLEMENT
THIS SUPPLEMENTto theMaster Loan Agreement datedMarch 19,2012(the "MLA"),is enteredintoas of March 21,2013 betweenCoBANK,ACB("CoBank") andSOUTH DAKOTA SOYBEAN PROCESSORS, LLC, Volga, South Dakota(the "Company"), and amends andrestatesthe Supplement dated October 4,2012and numbered RIB05lT05J.
SECTION 1. The Revolving Term Loan Commitment. On the terms and conditions set forth in the MLA and this Supplement, CoBank agrees to make loans to the Company from the date hereof, up to and including March 20, 2018, in an aggregate principal amount not to exceed, at any one time outstanding, $12,900,000.00 less the amounts scheduled to be repaid during the period set forth below in Section 5 (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 capital expenditures and to provide working capital to the Company.
SECTION 3. Term. IntentionallyOmitted.
SECTION 4. Interest.TheCompany agrees to pay interest on theunpaidbalance oftheloan(s)inaccordancewithone or more ofthefollowing interestrate options, as selected bytheCompany:
(A) One-Month LIBOR Index Rate.At a rate(rounded upwardto the nearest l/l00th andadjustedfor reservesrequired on"Eurocurrency Liabilities"[ashereinafter defined]forbankssubject to"FRBRegulationD"[ashereinafter defined]or required by anyother federallaw orregulation) perannum equal at alltimesto3.00%abovethe ratequoted by the BritishBankersAssociation (the"BBA")at11:00a.m. London time for the offering of one (1)-monthU.S.dollarsdeposits, as publishedby Bloomberg oranothermajorinformation vendorlistedonBBA'sofficial websiteonthefirst"U.S.BankingDay"(ashereinafterdefined)ineach week, withsuch rateto changeweekly onsuchday.Therateshall beresetautomatically,withoutthenecessity ofnoticebeingprovidedtotheCompanyoranyother party,onthe first"U.S. BankingDay"of each succeedingweek,and each changein therateshall be applicableto allbalances subjecttothis option. Information about the thencurrent rate shallbemade availableupon telephonicrequest. For purposeshereof:(1) "U.S.Banking Day"shall meanaday onwhich CoBankis openfor businessandbanks are openfor businessinNewYork,NewYork; (2) "EurocurrencyLiabilities" shall havethemeaning assetforth in"FRB RegulationD";and(3) "FRBRegulationD"shall mean Regulation Daspromulgatedbythe Board ofGovernors oftheFederalReserveSystem,12 CFRPart204, as amended.
(B) Quoted Rate.At a fixed rateperannumtobequoted by CoBankinitssole discretionineach instance. Under this option,ratesmay befixed onsuchbalancesand forsuch periods, asmaybe agreeableto CoBankin its solediscretionineach instance,providedthat:(1)the minimumfixedperiodshallbe30days;(2)amounts maybefixed inincrements of $100,000.00ormultiplesthereof;and(3)themaximumnumber offixesin placeat anyonetimeshallbefive.
| Revolving Term Loan Supplement RIB051T05K | -2- |
SOUTH DAKOTA SOYBEAN PROCESSORS, LLC
Volga, South Dakota
The Companyshallselectthe applicablerateoption at thetimeitrequests aloanhereunderand may,subjectto thelimitations setforthabove, electtoconvertbalances bearing interestat thevariablerate optiontoone ofthe fixed rateoptions.Uponthe expirationofanyfixed rateperiod,interest shallautomatically accrueat thevariablerateoptionunless the amount fixed isrepaidorfixed for an additionalperiod inaccordance withthe termshereof.Notwithstandingtheforegoing,ratesmaynot be fixedfor periods expiring afterthe maturity dateof theloans andratesmaynot be fixedin suchamannerastocausethe Company tohave tobreak anyfixed rate balance in order topayanyinstallment ofprincipal. Allelectionsprovidedforhereinshallbemadetelephonicallyorinwriting andmustbereceived by12:00 NoonCompany'slocal time.Interestshallbe calculatedon the actual number ofdayseachloan is outstanding on thebasisof a year consisting of360days andshall bepayablemonthly inarrearsby the20thdayofthefollowingmonthor onsuchotherday insuch monthas CoBank shallrequire inawritten noticetothe Company.
SECTION5. PromissoryNote.TheCompanypromises torepay onthe dateof eachreductionin theCommitment,the outstandingprincipal, ifany,that is inexcess of theavailablebalance. The available balanceshallbedecreased by$1,300,000.00onthe20thdayof eachMarch andSeptember beginning September 20,2013,andcontinuingthroughand including September20,2017, followedbya finalreductionattheexpirationofthe CommitmentonMarch20,2018,atwhich timeanyoutstandingbalanceshallbedue andpayablein full.Ifanyinstallmentdue date is notadayonwhich CoBank is open for business,thensuchpayment shallbe madeonthenext dayonwhichCoBankisopen forbusiness.Inadditiontotheabove,the Company promises to pay interestontheunpaidprincipal balancehereof atthe timesandinaccordancewith the provisionsset forthin Section 4hereof.Thisnotereplacesandsupersedes,butdoesnotconstitute paymentofthe indebtednessevidencedby,the promissorynotesetforth intheSupplement beingamended andrestatedhereby.
SECTION6. Security.The Company'sobligationshereunder and,tothe extent relatedhereto,under theMLA,including withoutlimitationanyfuture advancesunderanyexistingmortgageordeed oftrust,shallbesecured asprovided intheSecuritySectionoftheMLA.
SECTION7. CommitmentFee.Inconsideration ofthe Commitment,the Company agreesto pay to CoBankacommitment feeon theaveragedailyunusedportionoftheCommitmentatthe rateof0.50%per annum(calculatedona 360-daybasis),payablemonthly in arrearsbythe 20th day following eachmonth.Such feeshall be payableforeachmonth(orportion thereof)occurringduring theoriginal oranyextendedtermofthe Commitment.
IN WITNESS WHEREOF,the partieshave causedthisSupplement to beexecutedbytheirdulyauthorized officers as ofthe dateshownabove.
| CoBANK, ACB | | SOUTHDAKOTASOYBEAN |
| | | PROCESSORS,LLC |
| | | |
| By: | | | By: | |
| | | |
| Title: | | | Title: | |
