**Exhibit 10.15****BUSINESSLOAN AGREEMENT**               **Principal** **Loan Date** **Maturity** **Loan No** Call / Coll **Account** **Officer** **Initials****$3,517,572.00** **03-23-2007** **03-23-2008** **3787** 2200   **242**  References in the shaded area are for Lender’s use only and do not limit the applicability of this document to any particular loan or item. Any item above containing “***” has been omitted due to text length limitations.         **Borrower:** Homeland Energy Solutions, LLC (TIN:   **Lender:** Home Federal Savings Bank  48-1200438)     Business Banking  106 W Main, PO Box C     1016 Civic Center Dr NW Suite 300  Riceville, IA 50466     Rochester, MN 55901**THIS BUSINESS LOAN AGREEMENT dated March 23, 2007, is made and executed between HomelandEnergy Solutions, LLC (“Borrower”) and Home Federal Savings Bank (“Lender”) on the followingterms and conditions. Borrower has received prior commercial loans from Lender or hasapplied to Lender for a commercial loan or loans or other financial accommodations, includingthose which may be described on any exhibit or schedule attached to this Agreement (“Loan”).Borrower understands and agrees that: (A) in granting, renewing, or extending any Loan,Lender is relying upon Borrower’s representations, warranties, and agreements as set forth inthis Agreement; (B) the granting, renewing, or extending of any Loan by Lender at all timesshall be subject to Lender’s sole Judgment and discretion; and (C) all such Loans shall beand remain subject to the terms and conditions of this Agreement.****TERM.**This Agreement shall be effective as of March 23, 2007, and shall continue in fullforce and effect until such time as all of Borrower’s Loans in favor of Lender have been paidin full, including principal, interest, costs, expenses, attorneys’ fees, and other fees andcharges, or until such time as the parties may agree in writing to terminate this Agreement.**CONDITIONS PRECEDENT TO EACH ADVANCE.**Lender’s obligation to make the initial Advance andeach subsequent Advance under this Agreement shall be subject to the fulfillment to Lender’ssatisfaction of all of the conditions set forth in this Agreement and in the RelatedDocuments.**Loan Documents.**Borrower shall provide to Lender the following documents for the Loan: (1)the Note; (2) Security Agreements granting to Lender security interests in the Collateral;(3) financing statements and all other documents perfecting Lender’s Security Interests;(4) evidence of insurance as required below; (6) together with all such Related Documentsas Lender may require for the Loan; all in form and substance satisfactory to Lender andLender’s counsel.**Borrower’s Authorization.**Borrower shall have provided in form and substance satisfactoryto Lender properly certified resolutions, duly authorizing the execution and delivery ofthis Agreement, the Note and the Related Documents. In addition, Borrower shall haveprovided such other resolutions, authorizations, documents and instruments as Lender orits counsel, may require.**Payment of Fees and Expenses.**Borrower shall have paid to Lender all fees, charges, andother expenses which are then due and payable as specified in this Agreement or anyRelated Document.**Representations and Warranties.**The representations and warranties set forth in thisAgreement, in the Related Documents, and in any document or certificate delivered toLender under this Agreement are true and correct.**No Event of Default.**There shall not exist at the time of any Advance a condition whichwould constitute an Event of Default under this Agreement or under any Related Document.**REPRESENTATIONS AND WARRANTIES.**Borrower represents and warrants to Lender, as of thedate of this Agreement, as of the date of each disbursement of loan proceeds, as of the dateof any renewal, extension or modification of any Loan, and at all times any Indebtednessexists:**Organization.**Borrower is a limited liability company which is, and at all times shall be,duly organized, validly existing, and in good standing under and by virtue of the laws ofthe State of Iowa. Borrower is duly authorized to transact business in all other states inwhich Borrower is doing business, having obtained all necessary filings, governmentallicenses and approvals for each state in which Borrower is doing business. Specifically,Borrower is, and at all times shall be, duly qualified as a foreign limited liabilitycompany in all states in which the failure to so qualify would have a material adverseeffect on its business or financial condition. Borrower has the full power and authorityto own its properties and to transact the business in which it is presently engaged orpresently proposes to engage. Borrower maintains an office at 106 W Main, PO Box C,Riceville, IA 50466. Unless Borrower has designated otherwise in writing, the principaloffice is the office at which Borrower keeps its books and records including its recordsconcerning the Collateral. Borrower will notify Lender prior to any change in the locationof Borrower’s state of organization or any change in Borrower’s name. Borrower shall doall things necessary to preserve and to keep in full force and effect its existence,rights and privileges, and shall comply with all regulations, rules, ordinances, statutes,orders and decrees of any governmental or quasi-governmental authority or court applicableto Borrower and Borrower’s business activities.**Assumed Business Names.**Borrower has filed or recorded all documents or filings requiredby law relating to all assumed business names used by Borrower. Excluding the name ofBorrower, the following is a complete list of all assumed business names under whichBorrower does business: None.**Authorization.**Borrower’s execution, delivery, and performance of this Agreement and allthe Related Documents have been duly authorized by all necessary action by Borrower and donot conflict with, result in a violation of, or constitute a default under (1) anyprovision of (a) Borrower’s articles of organization or membership agreements, or (b) anyagreement or other instrument binding upon Borrower or (2) any law, governmentalregulation, court decree, or order applicable to Borrower or to Borrower’s properties.**Financial information.**Each of Borrower’s financial statements supplied to Lender trulyand completely disclosed Borrower’s financial condition as of the date of the statement,and there has been no material adverse change in Borrower’s financial condition subsequentto the date of the most recent financial statement supplied to Lender. Borrower has nomaterial contingent obligations except as disclosed in such financial statements.**Legal Effect.**This Agreement constitutes, and any instrument or agreement Borrower isrequired to give under this Agreement when delivered will constitute legal, valid, andbinding obligations of Borrower enforceable against Borrower in accordance with theirrespective terms.**Properties.**Except as contemplated by this Agreement or as previously disclosed inBorrower’s financial statements or in writing to Lender and as accepted by Lender, andexcept for property tax liens for taxes not presently due and payable, Borrower owns andhas good title to all of Borrower’s properties free and clear of all Security Interests,and has not executed any security documents or financing statements relating to suchproperties. All of Borrower’s properties are titled in Borrower’s legal name, and Borrowerhas not used or filed a financing statement under any other name for at least the lastfive (5) years.
 
 

 
**BUSINESS LOAN AGREEMENT****Loan No: 3787** **(Continued)** **Page 2****Hazardous Substances.**Except as disclosed to and acknowledged by Lender in writing, Borrowerrepresents and warrants that; (1) Duringthe period of Borrower’s ownership of the Collateral, there has been no use,generation, manufacture, storage, treatment, disposal, release or threatened release ofany Hazardous Substance by any person on, under, about or from any of the Collateral. (2)Borrower has no knowledge of, or reason to believe that there has been (a) any breach orviolation of any Environmental Laws; (b) any use, generation, manufacture, storage,treatment, disposal, release or threatened release of any Hazardous Substance on, under,about or from the Collateral by any prior owners or occupants of any of the Collateral; or(c) any actual or threatened litigation or claims of any kind by any person relating tosuch matters. (3) Neither Borrower nor any tenant, contractor, agent or other authorizeduser of any of the Collateral shall use, generate, manufacture, store, treat, dispose ofor release any Hazardous Substance on, under, about or from any of the Collateral; and anysuch activity shall be conducted in compliance with all applicable federal, state, andlocal laws, regulations, and ordinances, including without limitation all EnvironmentalLaws. Borrower authorizes Lender and its agents to enter upon the Collateral to make suchinspections and tests as Lender may deem appropriate to determine compliance of theCollateral with this section of the Agreement. Any inspections or tests made by Lendershall be at Borrower’s expense and for Lender’s purposes only and shall not be construedto create any responsibility or liability on the part of Lender to Borrower or to anyother person. The representations and warranties contained herein are based on Borrower’sdue diligence in investigating the Collateral for hazardous waste and HazardousSubstances. Borrower hereby (1) releases and waives any future claims against Lender forindemnity or contribution in the event Borrower becomes liable for cleanup or other costsunder any such laws, and {2) agrees to indemnify, defend, and hold harmless Lender againstany and all claims, losses, liabilities, damages, penalties, and expenses which Lender maydirectly or indirectly sustain or suffer resulting from a breach of this section of theAgreement or as a consequence of any use, generation, manufacture, storage, disposal,release or threatened release of a hazardous waste or substance on the Collateral. Theprovisions of this section of the Agreement, including the obligation to indemnify anddefend, shall survive the payment of the indebtedness and the termination, expiration orsatisfaction of this Agreement and shall not be affected by Lender’s acquisition of anyinterest in any of the Collateral, whether by foreclosure or otherwise.**Litigation and Claims.**No litigation, claim, investigation, administrative proceeding orsimilar action (including those for unpaid taxes) against Borrower is pending orthreatened, and no other event has occurred which may materially adversely affectBorrower’s financial condition or properties, other than litigation, claims, or otherevents, if any, that have been disclosed to and acknowledged by Lender in writing.**Taxes.**To the best of Borrower’s knowledge, all of Borrower’s tax returns and reports thatare or were required to be filed, have been filed, and all taxes, assessments and othergovernmental charges have been paid in full, except those presently being or to becontested by Borrower in good faith in the ordinary course of business and for whichadequate reserves have been provided.**Lien Priority.**Unless otherwise previously disclosed to Lender in writing, Borrower hasnot entered into or granted any Security Agreements, or permitted the filing or attachmentof any Security Interests on or affecting any of the Collateral directly or indirectlysecuring repayment of Borrower’s Loan and Note, that would be prior or that may in any waybe superior to Lender’s Security Interests and rights in and to such Collateral.**Binding Effect.**This Agreement, the Note, all Security Agreements (if any), and allRelated Documents are binding upon the signers thereof, as well as upon their successors,representatives and assigns, and are legally enforceable in accordance with theirrespective terms.**AFFIRMATIVE COVENANTS.**Borrower covenants and agrees with Lender that, so long as this Agreementremains in effect, Borrower will:**Notices of Claims and Litigation.**Promptly inform Lender in writing of {1) all materialadverse changes in Borrower’s financial condition, and (2) all existing and all threatenedlitigation, claims, investigations, administrative proceedings or similar actionsaffecting Borrower or any Guarantor which could materially affect the financial conditionof Borrower or the financial condition of any Guarantor.**Financial Records.**Maintain its books and records in accordance with GAAP, applied on aconsistent basis, and permit Lender to examine and audit Borrower’s books and records atall reasonable times.**Financial Statements.**Furnish Lender with such financial statements and other relatedinformation at such frequencies and in such detail as Lender may reasonably request.**Additional Information.**Furnish such additional information and statements, as Lender mayrequest from time to time.**Insurance.**Maintain fire and other risk insurance, public liability insurance, and suchother insurance as Lender may require with respect to Borrower’s properties andoperations, in form, amounts, coverages and with insurance companies acceptable to Lender.Borrower, upon request of Lender, will deliver to Lender from time to time the policies orcertificates of insurance in form satisfactory to Lender, including stipulations thatcoverages will not be cancelled or diminished without at least ten (10) days prior writtennotice to Lender. Each insurance policy also shall include an endorsement providing thatcoverage in favor of Lender will not be impaired in any way by any act, omission ordefault of Borrower or any other person. In connection with all policies covering assetsin which Lender holds or is offered a security interest for the Loans, Borrower willprovide Lender with such lender’s loss payable or other endorsements as Lender mayrequire.**Insurance Reports.**Furnish to Lender, upon request of Lender, reports on each existinginsurance policy showing such information as Lender may reasonably request, includingwithout limitation the following: {1) the name of the insurer; (2) the risks insured; {3)the amount of the policy; (4) the properties insured; (5) the then current property valueson the basis of which insurance has been obtained, and the manner of determining thosevalues; and (6) the expiration date of the policy. In addition, upon request of Lender(however not more often than annually), Borrower will have an independent appraisersatisfactory to Lender determine, as applicable, the actual cash value or replacement costof any Collateral. The cost of such appraisal shall be paid by Borrower.**Other Agreements.**Comply with all terms and conditions of all other agreements, whethernow or hereafter existing, between Borrower and any other party and notify Lenderimmediately in writing of any default in connection with any other such agreements.**Loan Proceeds.**Use all Loan proceeds solely for Borrower’s business operations, unlessspecifically consented to the contrary by Lender in writing.**Taxes, Charges and Liens.**Pay and discharge when due all of its indebtedness andobligations, including without limitation all assessments, taxes, governmental charges,levies and liens, of every kind and nature, imposed upon Borrower or its properties,income, or profits, prior to the date on which penalties would attach, and all lawfulclaims that, if unpaid, might become a lien or charge upon any of Borrower’sproperties, income, or profits.**Performance.**Perform and comply, in a timely manner, with all terms, conditions, andprovisions set forth in this Agreement, in the Related Documents, and in all otherinstruments and agreements between Borrower and Lender. Borrower shall notify Lenderimmediately in writing of any default in connection with any agreement.
 
 

 
**BUSINESS LOAN AGREEMENT****Loan No: 3787** **(Continued)** **Page 3****Operations.**Maintain executive and management personnel with substantially the samequalifications and experience as the present executive and management personnel; providewritten notice to Lender of any change in executive and management personnel; conduct itsbusiness affairs in a reasonable and prudent manner.**Environmental Studies.**Promptly conduct and complete, at Borrower’s expense, all suchinvestigations, studies, samplings and testings as may be requested by Lender or anygovernmental authority relative to any substance, or any waste or by-product of anysubstance defined as toxic or a hazardous substance under applicable federal, state, orlocal law, rule, regulation, order or directive, at or affecting any property or anyfacility owned, leased or used by Borrower.**Compliance with Governmental Requirements.**Comply with all laws, ordinances, andregulations, now or hereafter in effect, of all governmental authorities applicable to theconduct of Borrower’s properties, businesses and operations, and to the use or occupancyof the Collateral, including without limitation, the Americans With Disabilities Act.Borrower may contest in good faith any such law, ordinance, or regulation and withholdcompliance during any proceeding, including appropriate appeals, so long as Borrower hasnotified Lender in writing prior to doing so and so long as, in Lender’s sole opinion,Lender’s interests in the Collateral are not jeopardized. Lender may require Borrower topost adequate security or a surety bond, reasonably satisfactory to Lender, to protectLender’s interest.**Inspection.**Permit employees or agents of Lender at any reasonable time to inspect any andall Collateral for the Loan or Loans and Borrower’s other properties and to examine oraudit Borrower’s books, accounts, and records and to make copies and memoranda ofBorrower’s books, accounts, and records. If Borrower now or at any time hereaftermaintains any records (including without limitation computer generated records andcomputer software programs for the generation of such records) in the possession of athird party, Borrower, upon request of Lender, shall notify such party to permit Lenderfree access to such records at all reasonable times and to provide Lender with copies ofany records it may request, all at Borrower’s expense.**Environmental Compliance and Reports.**Borrower shall comply in all respects with any andall Environmental Laws; not cause or permit to exist, as a result of an intentional orunintentional action or omission on Borrower’s part or on the part of any third party, onproperty owned and/or occupied by Borrower, any environmental activity where damage mayresult to the environment, unless such environmental activity is pursuant to and incompliance with the conditions of a permit issued by the appropriate federal, state orlocal governmental authorities; shall furnish to Lender promptly and in any event withinthirty (30) days after receipt thereof a copy of any notice, summons, lien, citation,directive, letter or other communication from any governmental agency or instrumentalityconcerning any intentional or unintentional action or omission on Borrower’s part inconnection with any environmental activity whether or not there is damage to theenvironment and/or other natural resources.**Additional Assurances.**Make, execute and deliver to Lender such promissory notes,mortgages, deeds of trust, security agreements, assignments, financing statements,instruments, documents and other agreements as Lender or its attorneys may reasonablyrequest to evidence and secure the Loans and to perfect all Security Interests.**LENDER’S EXPENDITURES.**If any action or proceeding is commenced that would materially affectLender’s interest in the Collateral or if Borrower fails to comply with any provision of thisAgreement or any Related Documents, including but not limited to Borrower’s failure todischarge or pay when due any amounts Borrower is required to discharge or pay under thisAgreement or any Related Documents, Lender on Borrower’s behalf may {but shall not beobligated to) take any action that Lender deems appropriate, including but not limited todischarging or paying all taxes, liens, security interests, encumbrances and other claims, atany time levied or placed on any Collateral and paying all costs for insuring, maintainingand preserving any Collateral, All such expenditures incurred or paid by Lender for suchpurposes will then bear interest at the rate charged under the Note from the date incurred orpaid by Lender to the date of repayment by Borrower. All such expenses will become a part ofthe Indebtedness and, at Lender’s option, will {A) be payable on demand; (13) be added to thebalance of the Note and be apportioned among and be payable with any installment payments tobecome due during either (1) the term of any applicable insurance policy; or (2) theremaining term of the Note; or (C) be treated as a balloon payment which will be due andpayable at the Note’s maturity.**NEGATIVE COVENANTS.**Borrower covenants and agrees with Lender that while this Agreement is ineffect, Borrower shall not, without the prior written consent of Lender:**Indebtedness and Liens.**(1) Except for trade debt incurred in the normal course ofbusiness and indebtedness to Lender contemplated by this Agreement, create, incur orassume indebtedness for borrowed money, including capital leases, (2) sell, transfer,mortgage, assign, pledge, lease, grant a security interest in, or encumber any ofBorrower’s assets {except as allowed as Permitted Liens), or (3) sell with recourse any ofBorrower’s accounts, except to Lender.**Continuity of Operations.**(1) Engage in any business activities substantially differentthan those in which Borrower is presently engaged, (2) cease operations, liquidate, merge,transfer, acquire or consolidate with any other entity, change its name, dissolve ortransfer or sell Collateral out of the ordinary course of business, or {3) make anydistribution with respect to any capital account, whether by reduction of capital orotherwise.**Loans. Acquisitions and Guaranties.**(1) Loan, invest in or advance money or assets to anyother person, enterprise or entity, (2) purchase, create or acquire any interest in anyother enterprise or entity, or (3) incur any obligation as surety or guarantor other thanin the ordinary course of business.**Agreements.**Borrower will not enter into any agreement containing any provisions whichwould be violated or breached by the performance of Borrower’s obligations under thisAgreement or in connection herewith.**CESSATION OF ADVANCES.**If Lender has made any commitment to make any Loan to Borrower,whether under this Agreement or under any other agreement, Lender shall have no obligation tomake Loan Advances or to disburse Loan proceeds if: (A) Borrower or any Guarantor is indefault under the terms of this Agreement or any of the Related Documents or any otheragreement that Borrower or any Guarantor has with Lender; {B) Borrower or any Guarantor dies,becomes incompetent or becomes insolvent, files a petition in bankruptcy or similarproceedings, or is adjudged a bankrupt; (C) there occurs a material adverse change inBorrower’s financial condition, in the financial condition of any Guarantor, or in the valueof any Collateral securing any Loan; or ID) any Guarantor seeks, claims or otherwise attemptsto limit, modify or revoke such Guarantor’s guaranty of the Loan or any other loan withLender; or (E) Lender in good faith deems itself insecure, even though noEvent of Default shall have occurred.**RIGHT OF SETOFF.**To the extent permitted by applicable law, Lender reserves a right of setoffin all Borrower’s accounts with Lender (whether checking, savings, or some other account).This includes all accounts Borrower holds jointly with someone else and all accounts Borrowermay open in the future. However, this does not include any IRA or Keogh accounts, or anytrust accounts for which setoff would be prohibited by law. Borrower authorizes Lender, tothe extent permitted by applicable law, to charge or setoff all sums owing on theIndebtedness against any and all such accounts.
 
 

 
**BUSINESS LOAN AGREEMENT****Loan No: 3787** **(Continued)** **Page 4****DEFAULT.**Each of the following shall constitute an Event of Default under this Agreement:**Payment Default.**Borrower fails to make any payment when due under the Loan.**Other Defaults.**Borrower fails to comply with or to perform any other term, obligation,covenant or condition contained in this Agreement or in any of the Related Documents or tocomply with or to perform any term, obligation, covenant or condition contained in anyother agreement between Lender and Borrower.**Default in Favor of Third Parties.**Borrower or any Grantor defaults under any loan,extension of credit, security agreement, purchase or sales agreement, or any otheragreement, in favor of any other creditor or person that may materially affect any ofBorrower’s or any Grantor’s property or Borrower’s or any Grantor’s ability to repay theLoans or perform their respective obligations under this Agreement or any of the RelatedDocuments.**False Statements.**Any warranty, representation or statement made or furnished to Lender byBorrower or on Borrower’s behalf under this Agreement or the Related Documents is false ormisleading in any material respect, either now or at the time made or furnished or becomesfalse or misleading at any time thereafter.**Death or Insolvency.**The dissolution of Borrower (regardless of whether election tocontinue is made), any member withdraws from Borrower, or any other termination ofBorrower’s existence as a going business or the death of any member, the insolvency ofBorrower, the appointment of a receiver for any part of Borrower’s property, anyassignment for the benefit of creditors, *any*type of creditor workout, or thecommencement of any proceeding under any bankruptcy or insolvency laws by or againstBorrower.**Defective Collateralization.**This Agreement or any of the Related Documents ceases to bein full force and effect (including failure of any collateral document to create a validand perfected security interest or lien) at any time and for any reason.**Creditor or Forfeiture Proceedings.**Commencement of foreclosure or forfeiture proceedings,whether by judicial proceeding, self-help, repossession or any other method, by anycreditor of Borrower or by any governmental agency against any collateral securing theLoan. This includes a garnishment of any of Borrower’s accounts, including depositaccounts, with Lender. However, this Event of Default shall not apply if there is a goodfaith dispute by Borrower as to the validity or reasonableness of the claim which is thebasis of the creditor or forfeiture proceeding and if Borrower gives Lender written noticeof the creditor or forfeiture proceeding and deposits with Lender monies or a surety bondfor the creditor or forfeiture proceeding, in an amount determined by Lender, in its solediscretion, as being an adequate reserve or bond for the dispute.**Events Affecting Guarantor.**Any of the preceding events occurs with respect to anyGuarantor of any of the Indebtedness or any Guarantor dies or becomes incompetent, orrevokes or disputes the validity of, or liability under, any Guaranty of the Indebtedness.In the event of a death, Lender, at its option, may, but shall not be required to, permitthe Guarantor’s estate to assume unconditionally the obligations arising under theguaranty in a manner satisfactory to Lender, and, in doing so, cure any Event of Default.**Adverse Change.**A material adverse change occurs in Borrower’s financial condition, orLender believes the prospect of payment or performance of the Loan is impaired.**Insecurity.**Lender in good faith believes itself insecure.**Right to Cure.**If any default, other than a default on Indebtedness, is curable and ifBorrower or Grantor, as the case may be, has not been given a notice of a similar defaultwithin the preceding twelve (12) months, it may be cured if Borrower or Grantor, as thecase may be, after receiving written notice from Lender demanding cure of such default (1)cure the default within fifteen (15) days; or (2) if the cure requires more than fifteen(15) days, immediately initiate steps which Lender deems in Lender’s sole discretion to besufficient to cure the default and thereafter continue and complete all reasonable andnecessary steps sufficient to produce compliance as soon as reasonably practical.**EFFECT OF AN EVENT OF DEFAULT.**If any Event of Default shall occur, except where otherwiseprovided in this Agreement or the Related Documents, all commitments and obligations ofLender under this Agreement or the Related Documents or any other agreement immediately willterminate (including any obligation to make further Loan Advances or disbursements), and, atLender’s option, all Indebtedness immediately will become due and payable, all without noticeof any kind to Borrower, except that in the case of an Event of Default of the type describedin the “Insolvency” subsection above, such acceleration shall be automatic and not optional.In addition, Lender shall have all the rights and remedies provided in the Related Documentsor available at law, in equity, or otherwise. Except as may be prohibited by applicable law,all of Lender’s rights and remedies shall be cumulative and may be exercised singularly orconcurrently. Election by Lender to pursue any remedy shall not exclude pursuit of any otherremedy, and an election to make expenditures or to take action to perform an obligation ofBorrower or of any Grantor shall not affect Lender’s right to declare a default and toexercise its rights and remedies.**FACSIMILE AND COUNTERPART.**This document may be signed in any number of separate copies, eachof which shall be effective as an original, but all of which taken together shall constitutea single document. An electronic transmission or other facsimile of this document or anyrelated document shall be deemed an original and shall be admissible as evidence of thedocument and the signer’s execution.**THIS AGREEMENT APPLICABLE TO ALL LOANS.**Notwithstanding anything to the contrary herein, (1)the terms “Loan” and “Loans” shall mean and include the Note and any and all other notes,lines of credit and other financial accomodations from Lender to Borrower which presentlyexist or which are being executed in connection with this Agreement, excluding any such otherloans or financial accommodations which are not serviced by Home Federal Savings Bank, ortheir successors, and the terms “Loan” and “Loans” shall also mean and include all notes andcredit agreements entered into subsequent to the date hereof which specifically provide thatthey shall be governed by this Agreement, and (2) the term “Indebtedness” shall mean andinclude all indebtedness evidenced by the Note and every other note or credit agreementevidencing a Loan, and all other indebtedness for which Borrower is responsible under thisAgreement or any of the Related Documents.**FURTHER ASSURANCES.**The parties hereto agree to do all things deemed necessary by Lender inorder to fully document the loan evidenced by this Note and any related agreements, and willfully cooperate concerning the execution and delivery of security agreements, stock powers,instructions and/or other documents pertaining to any collateral intended to secure theIndebtedness. The undersigned agree to assist in the cure of any defects in the execution,delivery or substance of this Note and related agreements, and in the creation and perfectionof any liens, security interests or other collateral rights securing this Note.**MISCELLANEOUS PROVISIONS.**The following miscellaneous provisions are a part of this Agreement**Amendments.**This Agreement, together with any Related Documents, constitutes the entireunderstanding and agreement of the parties as to the matters set forth in this Agreement.No alteration of or amendment to this Agreement shall be effective unless given in writingand signed by the party or parties sought to be charged or bound by the alteration oramendment.
 
 

 
**BUSINESS LOAN AGREEMENT****Loan No: 3787** **(Continued)** **Page 5****Attorneys’ Fees; Expenses.**Borrower agrees to pay upon demand all of Lender’s costs andexpenses, including Lender’s attorneys’ fees and Lender’s legal expenses, incurred inconnection with the enforcement of this Agreement. Lender may hire or pay someone else tohelp enforce this Agreement, and Borrower shall pay the costs and expenses of suchenforcement. Costs and expenses include Lender’s attorneys’ fees and legal expenseswhether or not there is a lawsuit, including attorneys’ fees and legal expenses forbankruptcy proceedings (including efforts to modify or vacate any automatic stay orinjunction), appeals, and any anticipated post-judgment collection services. Borrower alsoshall pay all court costs and such additional fees as may be directed by the court.**Caption Headings.**Caption headings in this Agreement are for convenience purposes onlyand are not to be used to interpret or define the provisions of this Agreement.**Consent to Loan Participation.**Borrower agrees and consents to Lender’s sale or transfer,whether now or later, of one or more participation interests in the Loan to one or morepurchasers, whether related or unrelated to Lender. Lender may provide, without anylimitation whatsoever, to any one or more purchasers, or potential purchasers, anyinformation or knowledge Lender may have about Borrower or about any other matter relatingto the Loan, and Borrower hereby waives any rights to privacy Borrower may have withrespect to such matters, Borrower additionally waives any and all notices of sale ofparticipation interests, as well as all notices of any repurchase of such participationinterests. Borrower also agrees that the purchasers of any such participation interestswill be considered as the absolute owners of such interests in the Loan and will have allthe rights granted under the participation agreement or agreements governing the sale ofsuch participation interests. Borrower further waives all rights of offset or counterclaimthat it may have now or later against Lender or against any purchaser of such aparticipation interest and unconditionally agrees that either Lender or such purchaser mayenforce Borrower’s obligation under the Loan irrespective of the failure or insolvency of*any*holder of any interest in the Loan. Borrower further agrees that the purchaserof any such participation interests may enforce its interests irrespective of any personalclaims or defenses that Borrower may have against Lender.**Governing Law. This Agreement will be governed by federal law applicable to Lender and, tothe extent not preempted by federal law, the laws of the State of Iowa without regard toits conflicts of law provisions. This Agreement has been accepted by Lender in the Stateof Iowa.****No Waiver by Lender.**Lender shall not be deemed to have waived any rights under thisAgreement unless such waiver is given in writing and signed by Lender, No delay oromission on the part of Lender in exercising any right shall operate as a waiver of suchright or any other right. A waiver by Lender of a provision of this Agreement shall notprejudice or constitute a waiver of Lender’s right otherwise to demand strict compliancewith that provision or any other provision of this Agreement. No prior waiver by Lender,nor any course of dealing between Lender and Borrower, or between Lender and any Grantor,shall constitute a waiver of any of Lender’s rights or of any of Borrower’s or anyGrantor’s obligations as to any future transactions. Whenever the consent of Lender isrequired under this Agreement, the granting of such consent by Lender in any instanceshall not constitute continuing consent to subsequent instances where such consent isrequired and in all cases such consent may be granted or withheld in the sole discretionof Lender,**Notices.**Any notice required to be given under this Agreement shall be given in writing,and shall be effective when actually delivered, when actually received by telefacsimile(unless otherwise required by law), when deposited with a nationally recognized overnightcourier, or, if mailed, when deposited in the United States mail, as first class,certified or registered mail postage prepaid, directed to the addresses shown near thebeginning of this Agreement. Any party may change its address for notices under thisAgreement by giving formal written notice to the other parties, specifying that thepurpose of the notice is to change the party’s address. For notice purposes,Borrower agrees to keep Lender informed at all times of Borrower’s current address. Unlessotherwise provided or required by law, if there is more than one Borrower, anynotice given by Lender to any Borrower is deemed to be notice given to all Borrowers,**Severability.**If a court of competent jurisdiction finds any provision of this Agreementto be illegal, invalid, or unenforceable as to any circumstance, that finding shall notmake the offending provision illegal, invalid, or unenforceable as to any othercircumstance. If feasible, the offending provision shall be considered modified so that itbecomes legal, valid and enforceable. If the offending provision cannot be so modified, itshall be considered deleted from this Agreement. Unless otherwise required by law, theillegality, invalidity, or unenforceability of any provision of this Agreement shall notaffect the legality, validity or enforceability of any other provision of this Agreement.**Subsidiaries and Affiliates of Borrower.**To the extent the context of any provisions ofthis Agreement makes it appropriate, including without limitation any representation,warranty or covenant, the word “Borrower” as used in this Agreement shall include all ofBorrower’s subsidiaries and affiliates. Notwithstanding the foregoing however, under nocircumstances shall this Agreement be construed to require Lender to make any Loan orother financial accommodation to any of Borrower’s subsidiaries or affiliates.**Successors and Assigns.**All covenants and agreements by or on behalf of Borrower containedin this Agreement or any Related Documents shall bind Borrower’s successors and assignsand shall inure to the benefit of Lender and its successors and assigns. Borrower shallnot, however, have the right to assign Borrower’s rights under this Agreement or anyinterest therein, without the prior written consent of Lender.**Survival of Representations and Warranties.**Borrower understands and agrees that in makingthe Loan, Lender is relying on all representations, warranties, and covenants made byBorrower in this Agreement or in any certificate or other instrument delivered by Borrowerto Lender under this Agreement or the Related Documents. Borrower further agrees thatregardless of any investigation made by Lender, all such representations, warranties andcovenants will survive the making of the Loan and delivery to Lender of the RelatedDocuments, shall be continuing in nature, and shall remain in full force and effect untilsuch time as Borrower’s Indebtedness shall be paid in full, or until this Agreement shallbe terminated in the manner provided above, whichever is the last to occur.**Time is of the Essence.**Time is of the essence in the performance of this Agreement.**DEFINITIONS.**The following capitalized words and terms shall have the following meanings whenused in this Agreement. Unless specifically stated to the contrary, all references to dollaramounts shall mean amounts in lawful money of the United States of America. Words and termsused in the singular shall include the plural, and the plural shall include the singular, asthe context may require. Words and terms not otherwise defined in this Agreement shall havethe meanings attributed to such terms in the Uniform Commercial Code. Accounting words andterms not otherwise defined in this Agreement shall have the meanings assigned to them inaccordance with generally accepted accounting principles as in effect on the date of thisAgreement:**Advance.**The word “Advance” means a disbursement of Loan funds made, or to be made, toBorrower or on Borrower’s behalf on a line of credit or multiple advance basis under theterms and conditions of this Agreement.**Agreement.**The word “Agreement” means this Business Loan Agreement, as this Business LoanAgreement may be amended or modified from time to time, together with all exhibits andschedules attached to this Business Loan Agreement from time to time,**Borrower.**The word “Borrower” means Homeland Energy Solutions, LLC and includes allco-signers and co-makers signing the Note and all their successors and assigns.
 
 

 
**BUSINESS LOAN AGREEMENT****Loan No: 3787** **(Continued)** **Page 6****Collateral.**The word “Collateral” means all property and assets granted as collateralsecurity for a Loan, whether real or personal property, whether granted directly orindirectly, whether granted now or in the future, and whether granted in the form of asecurity interest, mortgage, collateral mortgage, deed of trust, assignment, pledge, croppledge, chattel mortgage, collateral chattel mortgage, chattel trust, factor’s lien,equipment trust, conditional sale, trust receipt, lien, charge, lien or title retentioncontract, lease or consignment intended as a security device, or any other security orlien interest whatsoever, whether created by law, contract, or otherwise.**Environmental Laws.**The words “Environmental Laws” mean any and all state, federal andlocal statutes, regulations and ordinances relating to the protection of human health orthe environment, including without limitation the Comprehensive Environmental Response,Compensation, and Liability Act of 1980, as amended, 42 U.S.C. Section 9601, et seq.(“CERCLA”), the Superfund Amendments and Reauthorization Act of 1986, Pub. L. No. 99-499(“SARA”), the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et seq., theResource Conservation and Recovery Act, 42 Section 6901, et seq., or other applicablestate or federal laws, rules, or regulations adopted pursuant thereto,**Event of Default.**The words “Event of Default” mean any of the events of default set forthin this Agreement in the default section of this Agreement.**GAAP.**The word “GAAP” means generally accepted accounting principles.**Grantor.**The word “Grantor” means each and all of the persons or entities granting aSecurity Interest in any Collateral for the Loan, including without limitation allBorrowers granting such a Security Interest.**Guarantor.**The word “Guarantor” means any guarantor, surety, or accommodation party of anyor all of the Loan.**Guaranty.**The word “Guaranty” means the guaranty from Guarantor to Lender, includingwithout limitation a guaranty of all or part of the Note.**Hazardous Substances.**The words “Hazardous Substances” mean materials that, because oftheir quantity, concentration or physical, chemical or infectious characteristics, maycause or pose a present or potential hazard to human health or the environment whenimproperly used, treated, stored, disposed of, generated, manufactured, transported orotherwise handled. The words “Hazardous Substances” are used in their very broadest senseand include without limitation any and all hazardous or toxic substances, materials orwaste as defined by or listed under the Environmental Laws. The term “HazardousSubstances” also includes, without limitation, petroleum and petroleum by-products or anyfraction thereof and asbestos.**Indebtedness.**The word “Indebtedness” means the indebtedness evidenced by the Note orRelated Documents, including all principal and interest together with all otherindebtedness and costs and expenses for which Borrower is responsible under this Agreementor under any of the Related Documents.**Lender.**The word “Lender” means Home Federal Savings Bank, its successors and assigns.**Loan.**The word “Loan” means any and all loans and financial accommodations from Lender toBorrower whether now or hereafter existing, and however evidenced, including withoutlimitation those loans and financial accommodations described herein or described on anyexhibit or schedule attached to this Agreement from time to time.**Note.**The word “Note” means the Note executed by Homeland Energy Solutions, LLC in theprincipal amount of $3,517,572.00 dated March 23, 2007, together with all renewals of,extensions of, modifications of, refinancings of, consolidations of, and substitutions forthe note or credit agreement.**Permitted Liens.**The words “Permitted Liens” mean (1) liens and security interestssecuring Indebtedness owed by Borrower to Lender; (2) liens for taxes, assessments, orsimilar charges either not yet due or being contested in good faith; (3) liens ofmaterialmen, mechanics, warehousemen, or carriers, or other like liens arising in theordinary course of business and securing obligations which are not yet delinquent; (4)purchase money liens or purchase money security interests upon or in any property acquiredor held by Borrower in the ordinary course of business to secure indebtedness outstandingon the date of this Agreement or permitted to be incurred under the paragraph of thisAgreement titled “Indebtedness and Liens”; (6) liens and security interests which, as ofthe date of this Agreement, have been disclosed to and approved by the Lender in writing;and (6) those liens and security interests which in the aggregate constitute an immaterialand insignificant monetary amount with respect to the net value of Borrower’s assets.**Related Documents.**The words “Related Documents” mean all promissory notes, creditagreements, loan agreements, environmental agreements, guaranties, security agreements,mortgages, deeds of trust, security deeds, collateral mortgages, and all otherinstruments, agreements and documents, whether now or hereafter existing, executed inconnection with the Loan.**Security Agreement.**The words “Security Agreement” mean and include without limitation anyagreements, promises, covenants, arrangements, understandings or other agreements, whethercreated by law, contract, or otherwise, evidencing, governing, representing, or creating aSecurity Interest.**Security Interest.**The words “Security Interest” mean, without limitation, any and alltypes of collateral security, present and future, whether in the form of a lien, charge,encumbrance, mortgage, deed of trust, security deed, assignment, pledge, crop pledge,chattel mortgage, collateral chattel mortgage, chattel trust, factor’s lien, equipmenttrust, conditional sale, trust receipt, lien or title retention contract, lease orconsignment intended as a security device, or any other security or lien interestwhatsoever whether created by law, contract, or otherwise.**BORROWER ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS BUSINESS LOAN AGREEMENT ANDBORROWER AGREES TO ITS TERMS. THIS BUSINESS LOAN AGREEMENT IS DATED MARCH 23, 2007.****BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS BUSINESS LOAN AGREEMENT AND ALLOTHER DOCUMENTS RELATING TO THIS DEBT.****BORROWER:****HOMELAND ENERGY SOLUTIONS, LLC**                  **By:**              /s/ Steven K. Eastman **By:**             /s/ Bernard Retterath             **Steve Eastman, President of Homeland Energy**