Exhibit 10.24
AGREEMENT TO COMPENSATE
GUARANTORS
THIS AGREEMENT is made and entered
into effective this 16th day of February, 2006, by and between
Great Plains Ethanol, LLC (the “Company”) and Robert
Broin, Jeff Broin, Todd Broin, Duane Sather, Fred Thurman, and
Dennis Schrag (collectively the
“Guarantors”).
RECITALS:
A.
The Company entered into a Natural Gas Distribution Delivery
Agreement dated September 2, 2002, with NorthWestern Energy
Corporation (“NEC”).
B.
In connection with the Natural Gas Distribution Delivery Agreement,
Home Federal Bank issued an Irrevocable Standby Letter of Credit
dated February 28, 2003, in the amount of $1,600,000.00 (the
“Letter of Credit”) in favor of NEC.
C.
The Letter of Credit was modified and restated pursuant to a First
Amended and Restated Irrevocable Standby Letter of Credit dated May
28, 2003, a Second Amended and Restated Irrevocable Standby Letter
of Credit dated February 25, 2004, in the amount of $1,250,000.00,
a Third Amended and Restated Irrevocable Standby Letter of Credit
dated February 28, 2005, in the amount of $1,125,000.00, and a
Fourth Amended and Restated Irrevocable Standby Letter of Credit
dated February 16, 2006, in the amount of $960,000.00.
D.&
