(E) Metering Point. Metering by the Seller will be at 7,200/12,470 volts in advanceof all service transformers and located in the substation constructed by the Cooperative.(F) Uncontrollable Forces. Any cause beyond the control of the party affected,including, but not limited to, failure of facilities, flood, earthquake, storm, fire, ice,lightning, wildlife, epidemic, war, riot, civil disturbances, strikes or labor disturbances,sabotage, or restraint by court order or public authority, which by exercise of due foresight suchparty could not reasonably have been expected to avoid, and which, by exercise of due diligence, itis unable to overcome.(G) Contract Demand. Maximum power and energy which Seller is obligated to provide tocustomer.(H) Wholesale Supplier. Dairyland Power Cooperative (“Dairyland”), the wholesalepower supplier currently providing service to Seller.2. Service —  Character of Use.(A) Seller shall supply and sell to Customer, and Customer shall take and purchase fromSeller, during the term of and subject to the provisions of this Agreement, the total electricpower and energy required for Customer’s Project and shall not use the electric power and energy asa supplement to any other supply, except in cases of emergency when Customer may be permitted toutilize back-up generation that may be installed by Customer. The Contract Demand for service is9,000 kilowatts (kW).(B) After the effective date and during the term of this Agreement, if any change in any stateor federal law, rule or regulation, or change in the agency or judicial application orinterpretation of said law, rule or regulation, requires a change in the delivery or sale ofelectric power and energy to Customer by Seller, then an amended Agreement shall be made andentered into between the Seller and Customer within forty-five (45) days of the effective date ofsuch change to permit the Customer and Seller to incorporate such change and its impact into thisagreement.3. Specification of Electric Energy — Delivery. The Seller’s Wholesale Suppliercontrols the frequency of current provided by the Seller. All electric energy delivered hereundershall be in the form of three-phase alternating current at a frequency of 60 Hertz and a voltage of12,470 kV delivered to the Point of Delivery. Except for periods of outage or infrequent andunavoidable fluctuations, the frequency shall be maintained within one-tenth (1/10) of a cycle persecond.
 
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4. Facilities.(A) The Seller will furnish, install and maintain the electrical facilities necessary toproperly and adequately deliver to the Customer all of the electric power and energy required underthe terms and conditions of this Agreement to the Point of Delivery. Customer will be responsiblefor all facilities beyond the Point of Delivery. Customer and Seller will coordinate the planningand design of their respective facilities to meet all safety and operational needs and conform toall applicable Federal and State electric service quality and reliability rules and regulations.(B) If utilization of electric energy by Customer should cause fluctuations or disturbanceswith the flow of energy on the distribution or transmission lines of Seller or Dairyland which canbe specifically identified, and verified by Seller, as the cause of the deterioration of service toother customers, including, telephone, television, or other communication facilities service,Seller shall have the right to require the installation by Customer of suitable apparatus tocorrect or limit such a fluctuation or disturbance at no cost to Seller. This corrective actionshall be taken within a reasonable period of time after notification in writing to Customer bySeller. If such corrective action is not taken in a timely manner, Seller shall have the right tocause reasonable corrective measures to be taken, and Customer herby agrees to pay all reasonableand actual costs associated with such action.(C) Any motors greater than 150 horsepower must be provided or equipped with soft startcontrollers.(D) Customer shall have responsibility and shall bear the expense to maintain all electricfacilities owned by Customer, and Seller and Wholesale Supplier shall have responsibility and shallbear the expense to maintain all transmission, distribution, and other facilities owned or operatedby Seller and Wholesale Supplier, except as otherwise expressly provided herein.(E) Each party shall indemnify and hold harmless the other party, and its partners, operator,affiliates, agents, and their officers, directors, representatives, designees, and employees, fromand against any and all claims, causes of action, losses, suits, penalties, damages, judgments,liabilities, costs, and expenses, including but not limited to court costs, costs of settlement,litigation costs and reasonable attorney’s fees occurring on its respective side of the Point ofDelivery or caused by any negligent or willful act or omission by the indemnifying party inperforming their obligations hereunder; provided, however, that nothing herein contained shall beconstrued as relieving or releasing either party from liability for injury or damage, whereveroccurring, resulting from its own negligence or the negligence of its officers, servants, agent oremployees, and in the event of concurrent negligence there shall be contribution in accordance withthe laws of Iowa; and provided further, that each of the parties hereto shall be solely responsiblefor injury or damage, wherever occurring, due solely to any defect in equipment installed,furnished or maintained by such party, except as otherwise provided herein.
 
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The electric power and energy supplied under this Agreement is supplied upon the express conditionthat after it passes the Point of Delivery it becomes the property of Customer and neither Sellernor Dairyland shall be liable for loss or damage to any person or property whatsoever, resultingdirectly or indirectly from the use, misuse, or presence of said electric power and energy on theCustomer’s premises or elsewhere, after it passes the Point of Delivery, except where such loss ordamage shall be shown to have been occasioned by the negligence of Seller, Dairyland, their agentsor employees.Except in the case of gross negligence or intentional misconduct, no party shall be liable for anyindirect, consequential, special, exemplary, or punitive damages of any nature arising out of orrelated to actions taken or omissions of such party in connection with this Agreement.(F) Customer shall provide Seller a suitable 2.59 acre site for the purpose of constructingand maintaining transmission facilities and a distribution substation at no cost to Seller orDairyland. The site provided is to be graded and compacted by Customer to the elevation agreed uponby the Parties. The real estate conveyed shall be free of any encumbrances or title defects andshall be conveyed by Warranty Deed. Customer land provided for this purpose shall be included as acredit toward the contribution in aid of construction at a valuation of $*** per acre, for a totalcontribution of $***.A suitable road to access the substation facilities shall be provided and maintained byCustomer for use by Customer, Seller, Dairyland Power Cooperative, and their agents.5. Monthly Rate.(A) Customer shall pay Seller for the electric power and energy provided hereunder thoseamounts set forth in the attached Rate Schedule, which schedule may be changed by the Cooperative’sBoard of Directors, subject to the limitations set forth below. The attached Rate Schedule isincorporated herein by reference. However, the Minimum Charge as specified in said Rate Scheduleshall be waived by Seller during the Start-up Period.(B) Seller will provide Customer advance written notice of any change in Seller’s tariff rateat least 30 days prior to the effective date of such change. Customer understands that a change incharacter of use by Customer may impact Customer’s eligibility for the rate set forth in paragraph5(A) above.(C) Any legal direct tax applicable to service rendered under this Agreement shall be chargedto Customer by Seller, in the form of a direct monthly pass-through without modification of theamount. If any such direct cost is subsequently modified or removed, Seller shall make anidentical modification or removal of the charge to Customer under this Agreement, effective as ofthe same date the modification or removal of the tax becomes effective. Customer reserves theright to contest or object to any such direct tax or charge applicable or potentially applicable toservice under this Agreement with the appropriate taxing authority.******* Portions omitted pursuant to a request for confidential treatment and filed separately with theSEC.
 
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(D) Facilities Charge. In order to provide electric service to the Customer, theSeller and Dairyland must construct certain facilities. Seller and Dairyland have agreed toconstruct a substation and the transmission facilities necessary to interconnect the new substationwith Dairyland’s transmission network without an advance in aid to construction by Customer. Inaddition, temporary and permanent line extensions from the substation to the Project shall berequired for use in serving the customer, which have been constructed at a total cost of $***.Customer has made a non-refundable advance in aid to construct said facilities equal to $***. Theentire cost of the temporary line extension and permanent line extension required to extend servicefrom the substation to the Project and shall be paid by Customer, with the balance of $*** (lessthe credit of $*** referenced in section 4.F above) being collected through the Distribution SystemCharge contained on the attached rate Schedule.In the event it is determined, subsequent to the execution of this Agreement, that additionalfacilities or modifications to planned facilities are required, the parties agree to negotiate ingood faith with respect to the design, modification, and construction of the additional or modifiedfacilities and the payment to be made by Customer to Seller for the additional or modifiedfacilities.6. Capital Credits. The Seller’s Board of Directors may classify its patrons andbusiness and allocate the excess, if any, of its receipts over expenses in any year as patronagecapital credits to the various patronage classifications. Allocations of the patronage capitalcredits may consider a variety of relevant factors such as the cost of rendering service, themargins produced by such service, the terms of the Agreement with patrons, and the obligations ofthe parties involved. The Seller has created or may create a separate classification of businessapplicable to its patrons receiving service under the rate schedule applicable to the Customer, andpatronage capital credits may accrue at a different rate for that classification of members. Theright of Customer to receive patronage capital credits shall survive the expiration or othertermination of this Agreement.7. Power Factor. Customer shall make reasonable efforts to operate its facilities atclose to unity power factor. Except during compressor motor starting, power factor may be lessthan ninety-eight percent (98%), but the Customer agrees to the reactive billing demand for themonth will be the maximum amount of lagging kVAR established by the Customer for any period of 60consecutives minutes during the month for which the bill is rendered that is in excess of the kVARequivalent to a 98% lagging power factor.8. Metering.(A) Metering shall be by digital primary meters for recording and monitoring electrical usageand demand. The meters shall have the capability to be monitored by telephone line or otherelectrical signal. The meters shall be periodically inspected and tested for the purpose ofestablishing that metering equipment is connected properly, meters are adjusted to register powerand energy accurately, and proper metering records are prepared and maintained. Seller shallnotify Customer in advance of the time of any meter testing so that a representative of theCustomer may be present.******* Portions omitted pursuant to a request for confidential treatment and filed separately with theSEC.
 
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(B) Meters may be sealed at the sole discretion of Wholesale Supplier and, if sealed, theseals shall be broken only upon occasions when the meters are to be inspected, tested, or adjusted,and authorized representatives of Customer and Seller or Wholesale Supplier shall be affordedreasonable opportunity to be present upon such occasions. Seller or Wholesale Supplier shallinspect and test, or cause to be inspected and tested, metering equipment at least yearly, and atany other reasonable time upon request by Customer. Any meter found to be defective or inaccurateshall be repaired and readjusted or replaced by Seller at no cost to the Customer. Should anymeter fail to register the power and energy delivered during any period, such deliveries shall, forbilling purposes and payment purposes, be estimated for such period using the best informationavailable. If the customer requests a meter test, the Customer shall pay the cost of such test ifthe meter has been previously tested within the past 12 months and the meter was found to be withinaccuracy standards set.(C) The meter readings shall be presumed to be accurate as to the quantity of power and energytaken by Customer unless, upon test, the meter is found to be in error by more than the limit setforth in the applicable rule of the IUB.9. Billing and Payment.(A) The customer shall pay the Seller for electric power and energy furnished hereunder at therates specified above.(B) Bills for service hereunder, shall be by electronic funds transfer to a bank designated bySeller. Such payment shall be within ten (10) days after the issuance of the bill each month forelectric power and energy furnished for the monthly billing period. If the Customer shall fail tomake any such payment by the due date, the Seller may discontinue service to the Customer upongiving five (5) days’ written notice to the Customer of its intention to do so; provided however,Customer may cure any intent to discontinue service for nonpayment by causing Seller to receive allamounts duly owing and outstanding before the end of the five (5) day notice period. Seller mayalso disconnect service if Customer fails to comply with standards established by the utility forinterconnection, safety, and operating reliability; for any breach of contract that jeopardizes thehealth and safety of persons or the integrity of the utility electric system; for reasonableperiods for the purpose of maintenance, testing, replacement, and repair of the utility system;Customer’s failure to comply with the Seller’s electric service tariff, Articles of Incorporation,or Bylaws; or for any other cause as set forth in the rules of the IUB. In this event, Customershall have 30 day notification period to remedy its operation and meet standards as requested. Theprompt payment provisions provided herein and the cash deposit set forth below recognize theSeller’s willingness to finance and carry the risk related to the substation investment and aportion of the distribution delivery system.(C) An amount equal to $*** shall be paid by Customer to Seller in advance of Seller providingelectric service as a customer deposit. Such deposit shall be in an account, upon which Sellershall be entitled to draw upon such account at anytime its wholesale electric bill for service toCustomer becomes due prior to receiving payment from Customer pursuant toParagraph 9(B) or in the event of nonpayment by Customer; if Seller draws on such account, it shallreplace funds in such account within one (1) day of receiving payment from Customer.******* Portions omitted pursuant to a request for confidential treatment and filed separately with theSEC.
 
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(D) The Seller may from time to time change the required deposit amount based upon theCustomer’s historical actual or projected power and energy consumption and the Seller’s historicalor projected costs for Customer’s power and energy consumption. Customer acknowledges that thedeposit required hereunder is intended to take into account the Seller’s willingness to finance aportion of the cost of the facilities required to provide service to Customer as set forth inSection 5(D) above.10. Additional Terms. The electric service contracted for herein is to be providedand taken in accordance with the provisions of this Agreement for Electric Service and allapplicable provisions of the laws of the State of Iowa. Customer shall be a member of Seller andshall be bound by the provisions of the Articles of Incorporation and the Bylaws of the Seller andby such rules and regulations as may from time to time be adopted by the Seller. Each party agreesthat it will at all times maintain its lines and equipment and other facilities required under thisAgreement in a safe operating condition in conformity with generally accepted standards forelectric utilities in the State of Iowa.11. Resale. Customer understands and agrees that the electric service provided underthis Agreement is for the operation of the Customer’s Homeland Energy Ethanol Plant and relatedpurposes. Accordingly, such power and energy shall not to be resold, used, delivered, shared, ordistributed to any other person, firm, corporation, association, or cooperative for use on the sitefor other purposes or outside the site for any purpose.12. Force Majeure and Liability. Neither Seller nor Customer shall be considered tobe in default in performance of any obligation hereunder, other than its obligation to makepayments for energy and services received, if failure of performance shall be due to UncontrollableForces. No party shall, however, be relieved of liability for failure of performance, if suchfailure is due to causes arising out of its own negligence or failure to remove or remedy withreasonable dispatch. Nothing contained herein, however, shall be construed to require any party toprevent or settle a strike or labor disturbance against its will. Neither party shall be liablefor consequential damages arising out of the failure to provide or to take electric power or energyunder this Agreement.13. Firm Service. Subject to the provisions of this Agreement, the electric service,rates and charges provided herein are for firm service, subject to emergency curtailments made onan equitable basis as to other firm customers of Seller. The parties will communicate andcoordinate operations to the extent practical given the conditions then existing. Seller shallattempt to provide Customer with advance notice of any planned outages when practical and torestore service promptly in light of the circumstances then existing. Seller anticipates, but doesnot guaranty, Firm Service will be available to Customer no later than March 9, 2009.
 
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14. Notices. Any notice required to be given to either party under the terms andprovisions of this Agreement may be given by mailing such notice to Customer or Seller by UnitedStates mail. The notice shall bear the date of its mailing and shall become effective onand after receipt. Each party shall designate from time to time persons entitled to receivenotice. As of the execution of this Agreement, the individuals and addresses to be used fornotices are as follows:If to Customer:Homeland Energy Solutions, L.L.C.Attn: Walt Wendland, CEO2779 Iowa Highway 24Lawler, Iowa 54124If to Seller:Hawkeye Tri-County Electric CooperativeAttn: CEO/General Manager24049 State Highway 9P.O. Box 90Cresco, Iowa 52136-009015. Waiver. No waiver, expressed or implied, to any breach of any one or more of thecovenants or agreements hereof shall be deemed to be a waiver of any subsequent breach.16. Right of Access. Subject to safety and other reasonable admission policies, dulyauthorized representatives of Seller and its Wholesale Supplier are authorized and shall bepermitted to enter the Customer’s premises at all reasonable times in order to carry out theprovisions of this Agreement.17. Term of Agreement. This Agreement shall become effective on the Effective Date,and except as otherwise provided herein shall remain in effect for ten (10) years from the InService Date and shall terminate on the tenth (10th) anniversary of the In Service Date.18. Continuation Beyond Term. Customer, at its option, may continue to receive theservice described herein following expiration of the above-described term, which service will beprovided at the rates provided herein, subject to change by consent or by the Board of Directors ofSeller, provided Customer shall be entitled to notice of any such change in the event service iscontinued beyond the initial term, then this Agreement shall be for a minimum term of two (2)years. Either party shall then have the right to terminate this Agreement upon giving six (6)months’ written notice of its intention to terminate.19. Succession. This Agreement shall be binding upon and inure to the benefit of thesuccessors, legal representatives and assigns of the respective parties hereto. Customer shall notassign all or any portion of its rights or obligations of this Agreement without first obtainingSeller’s written consent to assignment, which consent shall not be unreasonably withheld. In theevent the Customer assigns all or any part of its rights under this Agreement, Customer shallremain liable for the performance for all Customer’s obligations hereunder, notwithstanding theassignment.
 
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20. Law Governing. This Agreement shall be construed and governed in accordance withthe laws of the State of Iowa.21. Amendment. This Agreement may be amended from time to time through the executionby the parties of separate, written amendments.22. Cancellation Clause. In the event the Customer ceases operation during the termof this Agreement and as a result desires to cancel the Agreement for Electric Service, theCustomer shall be liable for a lump sum payment to Seller of an amount determined as follows:A = B+ C + D -  EWhere,A = Cancellation ChargeB = Any applicable charges incurred by Seller from its Wholesale Supplier associated withcancellation of service.C = Any outstanding charges for electric service, and any amounts payable in future periods byreason of provisions in the rate applicable to Seller, if any.D = The monthly Facilities Charge payment multiplied times the number of months remaining untilexpiration of the Term as set forth in Section 17 above.E = Salvage value net of the Cost of removal of facilities directly associated with providingservice to the Customer. The Seller shall make the determination concerning salvage value andshall provide documentation to Customer supporting the same.23. Load Forecast. At the Seller’s request, Customer shall provide Seller projections ofmonthly and/or annual capacity and energy requirements for the subsequent calendar year andsucceeding years. Customer shall also notify Seller whenever a major change in load forecastoccurs. Seller shall not be obligated to supply more than the Contract Demand in any 30-minuteperiod.24. DisputeResolution. The Parties agree to attempt to resolve any controversy or claimarising out of or relating to this Agreement, or breach thereof, by negotiations between theParties. If negotiations fail to resolve the conflict within thirty (30) days, the Parties agreeto participate in voluntary mediation.
 
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If mediation does not resolve any controversy or claim within thirty (30) days, any Party mayseek resolution of the controversy or claim in accordance with the rules of the AmericanArbitration Association, subject to the limitations of this section. The arbitrator (or, if athree-arbitrator panel is requested by any Party, each of the arbitrators) shall be a disinterestedpersonof recognized competence in the field in which the issues sought to be resolved have arisen,with at least ten (10) years of experience in that field. The arbitrator(s) shall havejurisdiction and authority only to interpret and determine compliance with the provisions of thisAgreement insofar as shall be necessary in the determination of the issues properly submitted tothem. The arbitrator(s) shall not have jurisdiction or authority to amend, alter, cancel, orrescind any provisions of this Agreement. This Agreement to arbitrate and any other agreement orconsent to arbitrate entered into in accordance with this section shall be specifically enforceableunder the prevailing law of any court having jurisdiction. Notice of the demand for arbitrationwill be filed in writing with the other Party to the Agreement.25. Demand Increase. If there is a need for an increase in the Contract Demand, Seller andDairyland shall determine whether any additions or modifications to existing facilities will berequired to accommodate the increased demand. Customer shall provide advance payment of theestimated cost of any required studies. If Customer is the sole beneficiary of the increaseddemand capacity they will assume the entire cost of the studies, however if other entities willbenefit from these studies Customer will only pay their equitable share. If Seller and Dairylanddetermine that additions or modifications are required, Seller and Dairyland shall estimate theinstalled cost of such additional or modified facilities (the “Additional Facilities”) and theestimated time required to install Additional Facilities.The need for Additional Facilities and the estimated installed cost and installation timeshall be communicated to Customer, in writing, within forty-five (45) days of the date ofCustomer’s notice of the need for an increased demand, or as soon as practicable thereafter ifthere is a need to consult with third parties.After reviewing the estimated installed cost and installation time, Customer may withdraw itsnotice of intent to increase its demand or Customer may elect to increase its demand. If Customerelects to increase its maximum demand, Customer shall reimburse Seller and Dairyland for its shareof the quoted cost (or a portion thereof) of the Additional Facilities on a progress payment basiswith payments made by Customer within thirty (30) days of billing.Customer shall reimburse Seller and Dairyland for the full cost of the Additional Facilitiesif Customer is the only entity benefited by the Additional Facilities. Customer shall reimburseSeller and Dairyland for an equitable share of the cost of the Additional Facilities if otherentities are benefited by the Additional Facilities. Additional Facilities may require amodification of the rate as negotiated by the parties.
 
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and yearfirst written above.         ATTEST:   HAWKEYE TRI-COUNTY ELECTRIC COOPERATIVE               By: /s/ Dean Fisher           Secretary     President           ATTEST:   HOMELAND ENERGY SOLUTIONS, L.L.C.               By: /s/ Walter Wendland           
 
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RATE SCHEDULE