SECOND AMENDMENT TO CONSTRUCTION LOAN AGREEMENT

Exhibit 10.2

SECOND AMENDMENT TO CONSTRUCTION LOAN AGREEMENT

This Second Amendment to Construction Loan Agreement is dated as of the 18th day of July, 2007, and is by and between RED TRAIL ENERGY, LLC, a North Dakota limited liability company (“BORROWER”), and FIRST NATIONAL BANK OF OMAHA (“BANK”), a national banking association established at Omaha, Nebraska.

WHEREAS, the BANK and BORROWER executed a written Construction Loan Agreement dated as of July 25, 2002, which, together will all amendments thereto, is collectively called the “AGREEMENT”.

Now, Therefore, in consideration of the AGREEMENT, and their mutual promises made herein, BANK and BORROWER agree as follows:

     1. Terms which are typed herein as all capitalized words and are not defined herein shall have same meanings as when described in the AGREEMENT.

     2. Paragraph 1.23 (A) of the AGREEMENT is hereby amended to read as follows, effective immediately:

1.24 “LOAN TERMINATION DATE” means the earliest to occur of the following: (i) as to the REVOLVING NOTE, July 17, 2008, as to FIXED RATE NOTE, VARIABLE RATE NOTE and as to LONG TERM REVOLVING NOTE, a date which is five years subsequent to the COMPLETION DATE, (ii) the date the OBLIGATIONS are accelerated pursuant to this AGREEMENT, and (iii) the date BANK has received (a) notice in writing from BORROWER of BORROWER’s election to terminate this AGREEMENT and (b) indefeasible payment in full of the OBLIGATIONS.

     3. BORROWER certifies by its execution hereof that the representations and warranties set forth in Section 5 of the AGREEMENT are true as of this date, and that no EVENT OF DEFAULT under the AGREEMENT, and no event which, with the giving of notice or passage of time or both, would become such an EVENT OF DEFAULT, has occurred as of this date.

     4. Except as amended hereby the parties ratify and confirm as binding upon them all of the terms of the AGREEMENT.

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     IN WITNESS whereof the parties set their hands as of the date first written above.

First National Bank of Omaha						Red Trail Energy, LLC
By:		/s/ Xxxxx Xxxxxx				By:		/s/ Xxxx Xxxxxx
		Xxxxx Xxxxxx				Name:		Xxxx Xxxxxx
		Commercial Loan Officer				Its:		Chairman
						And
						By:		/s/ Xxxxx Xxxxxxxx
						Name:		Xxxxx Xxxxxxxx
						Its:		Treas.

STATE OF		North Dakota			)
					)			ss.
COUNTY OF		Xxxxx			)

     On this 24 day of July, 2007, before me, the undersigned, a Notary Public, personally appeared Xxxx Xxxxxx, Chairman of Red Trail Energy, LLC, on behalf of said entity, who executed the foregoing instrument, and acknowledged that he executed the same as his voluntary act and deed and that of the Company.

/s/ De Ell Xxxx

Notary Public

XXXXX XXXX

Notary Public

State of North Dakota

My Commission Expires Oct. 21, 0000

XXXXX XX		Xxxxx Xxxxxx			)
					)			ss.
COUNTY OF		Xxxxx			)

     On this 24 day of July, 2007, before me, the undersigned, a Notary Public, personally appeared Xxxxx Xxxxxxxx, Treas of Red Trail Energy, LLC, on behalf of said entity, who executed the foregoing instrument, and acknowledged that he executed the same as his voluntary act and deed and that of the Company.

/s/ De Ell Xxxx

Notary Public

XXXXX XXXX

Notary Public

State of North Dakota

My Commission Expires Oct. 21, 2011