Exhibit 10.2
Loan No. RIE539T05D
NON-REVOLVING CREDIT
SUPPLEMENT
LETTERS OF
CREDIT
THIS SUPPLEMENT to
the Master Loan Agreement dated May 23, 2005 (the
“MLA”), is entered into as of May 15, 2007 between
CoBANK, ACB (“CoBank”) and DAKOTA GROWERS
PASTA COMPANY, INC., Carrington, North Dakota (the
“Company”), and amends and restates the Supplement
dated May 26, 2006 and numbered RIE539T05C.
SECTION
1. The
Non-Revolving Credit Facility. On the terms and
conditions set forth in the MLA and this Supplement, CoBank agrees
to make loans to the Company during the period set forth below in
an aggregate principal amount not to exceed $750,000.00 at any one
time outstanding (the “Commitment”). Within the
limits of the Commitment, amounts borrowed and later repaid may not
be reborrowed.
SECTION
2.
Purpose.
The purpose of the Commitment is to reimburse CoBank for any drafts
that it may honor under letter(s) of credit issued hereunder
(“Letter of Credit”). If CoBank honors any such
drafts submitted under a Letter of Credit, Company hereby
irrevocably authorizes CoBank to make a loan hereunder to reimburse
CoBank for such draft payments.
SECTION
3. Term.
The term of the Commitment shall be from the date hereof, up
to and including September 30, 2008, 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 the following
interest rate:
CoBank Base Rate.
At a rate per annum
equal at a
