Document:

Exhibit
10.2

ENERGY
MANAGEMENT AGREEMENT

(Site Development and Operations)

The
purpose of this Agreement is to set forth the understanding and agreement
between U.S. Energy Services, Inc. (“U.S. Energy”) and Highwater
Ethanol, LLC (“Client”) related to the provision of energy
management services.

PROJECT
DESCRIPTION: Client is
developing a 50 million gallon per year ethanol plant (“Plant”) to be
located near Lamberton, MN.  The Plant
will have approximately a 5 MW peak usage in electricity and will consume
approximately 4,500 MMBtu of natural gas per day.

U.S.
ENERGY RESPONSIBILITIES:  U.S. Energy will provide
consulting and energy management services for supplies of natural gas and
electricity for the Plant.  These
services will be provided during the construction of the Plant (“Construction
Period”), and after the Construction Period when the Plant has been placed in
service (“Completion Date”).  The
Completion Date shall be determined when the Plant begins producing
ethanol.  These services will be provided
to Client upon request:

A.  Energy Infrastructure Advisory Services During
the Construction Period

1.                                       Provide an economic comparison of
distribution service options.  Such
options will include service from area distribution utilities, interstate
pipelines and third party contractors.

In the event that a direct
connect pipeline option is selected, U.S. Energy will submit a tap request to
the pipeline.  In addition, U.S. Energy
will also attempt to negotiate an option for Client to minimize interconnect costs
through the purchase of firm transportation to the Plant.

2.                                       Determine whether firm, interruptible, or a
blend of transportation entitlement will provide the lowest burnertip
cost.  Factors that will be considered
include pipeline credits for the new interconnect, cost of an alternate fuel
system, and availability of specific receipt point capacity.

3.                                       Provide advisory services to Client regarding
electric pricing and service agreements.

a.                                       Analyze the electric service proposals along
with primary, secondary and generation options and recommend an electric
sourcing strategy and plan.  The plan may
include a combination of electric supplier agreement and/or installation of
on-site generation.

b.                                      Negotiate final electric service agreements
that meet the pricing and reliability requirements of Client, including options
for third party access to electric metering.

c.                                       Prepare and implement a regulatory strategy,
if required and if an alternative power supplier is selected.  Any attorney fees required for the specific
purpose of obtaining regulatory approval for an alternative power supplier, if
any, will be over and above U.S. Energy’s monthly fee herein, and must be
pre-approved by Client.

4.                                       Evaluate the proposed electric distribution
infrastructure (substation) for reliability, future growth potential and
determination of the division of ownership of facilities between the utility
and the Plant.

5.                                       Investigate economic development rates,
utility grants, equipment rebates and other utility programs that may be
available.

B.  On-Going Energy
Management Services Following the Completion Date

U.S.
Energy will provide the following services at Client’s request:

1.                                       Provide natural gas supply information to
minimize the cost of natural gas purchased. This will include acquiring
multiple supply quotes and reporting to Client the various supply index and
fixed prices.  U.S. Energy will not take
title to Client gas supplies, but will communicate supply prices and potential
buying strategies.

2.                                       Negotiate with pipelines, utilities, other
shippers, and suppliers to provide transportation, balancing, and supply
agreements that meet Client’s performance criteria at the lowest possible cost.

3.                                       Develop and implement a price risk management
plan that is consistent with Client’s pricing objectives and risk profile. An analysis will be developed to help
determine the amount of fuel usage that should be considered for this price
management service.  U.S. Energy will
also provide price risk management information through the following
communications:

Weekly Update:  E-mailed each week

Monthly Pricing Letter:  Mailed
out the beginning of each month

Monthly Conference Call: Occurs the first Tuesday of each month

Hedge Recommendations: Updated regularly and published on U.S.
Energy’s web site

Annual Energy Conference: Occurs in May of each year.

Gold+ Web
Site Access:  Gold+ is U.S. Energy’s password-protected web
site that allows clients access to their information.  Gold+ access also makes available industry
news, hedging strategies and NYMEX pricing.

4.                                       Provide daily nominations to the suppliers,
pipeline, and other applicable shippers for natural gas deliveries to the
Plant. This will include daily electronic confirmations to Client of all
nominations and actual daily usage.  U.S.
Energy will utilize customer or utility supplied telemetering to obtain actual
usage data.

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5.                                       Provide a consolidated monthly invoice to Client
that reflects all applicable natural gas and electric energy costs.  U.S. Energy will be responsible for reviewing,
reconciling and paying all shipper, supplier and utility invoices.

6.                                   Provide a monthly usage report of electric
energy consumption and costs.  Also,
where applicable and available from the utility, obtain monthly interval
electric load data and provide monthly load profile graphs.

7.                                       On-going review and renegotiation of electric
service costs, as required.  This may
include:

a.                                       Completing and evaluating annual proposals to
identify the most reliable and economic third party electric energy supply.

b.                                      Identifying new service tariffs or
opportunities to renegotiate the service agreement to provide lower costs.

c.                                       Identifying on-site generation opportunities
as market conditions change.

d.                                      Provide a monthly projection of energy
(natural gas and electricity) and annual summaries.

8.             Provide natural gas and electric
energy operating budgets for the Plant.

AGENCY:  U.S.
Energy will act as Client’s agent while managing Client’s energy matters.  The scope of this agency is set forth in the
Agency Authorization between U.S. Energy and Client attached as Exhibit A
(the terms of which are made a part of this Agreement).

TERM:  The
initial term of this Agreement shall commence on May 1, 2006 and continue until
twelve (12) months after the Plant’s Completion Date.  It will then renew for a one-year term, year
to year thereafter, unless Client or U.S. Energy terminates the contract upon
sixty (60) days prior written notice before the annual renewal date.  Client shall remain responsible for payment
and performance associated with any and all transportation, supply, and storage
transactions entered into by U.S. Energy and authorized by Client, prior to
termination, as well as fees and charges for U.S. Energy’s services occurring
up until the termination date.

FEES:  U.S.
Energy’s fee for services during the term of this Agreement shall be a monthly
retainer fee of $3,050 per month plus pre-approved travel expenses. The monthly
retainer fee will increase 4% per year on the annual anniversary date of the
effective date of this Agreement.

In
the event that plant financing is not secured, this Agreement shall become null
and void and both parties will be relieved of professional and/or financial
obligations due the other party. 
However, Client shall remain responsible for payment and performance
associated with any and all transportation, supply, and storage transactions
entered into by U.S. Energy and authorized by Client, prior to termination, as
well as fees, charges

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and
pre-approved travel expenses for U.S. Energy’s services occurring up until the
termination date.  In the event the
project experiences significant delay, and U.S. Energy is not actively
performing tasks on behalf of Client, billing under this agreement may be
suspended until such time as the project is either terminated or reactivated.

If
Client elects to utilize U.S Energy to provide physical or financial natural
gas hedging services, a $.01/MMBTu administrative fee will be assessed on
volumes hedged to cover the costs associated with compliance to Federal and
State commodities rules and regulations and administrative costs of
facilitating this natural gas hedging service.

BILLING
AND PAYMENT:  On
the first of the month, U.S. Energy shall invoice Client for appropriate energy
costs from the previous month and for the U.S. Energy retainer for the current
month.  Client shall pay U.S. Energy
within ten (10) days of receipt of invoice.

TAXES:  Client
will be responsible for payment of all taxes including, but not limited to, all
sales, use, excise, BTU, heating value and other taxes associated with the
purchase and/or transport of natural gas, electricity or other fuels and the
provision of services hereunder.

CONFIDENTIALITY:  U.S.
Energy shall not divulge to any other person or party any information developed
by U.S. Energy hereunder or revealed to U.S. Energy pursuant to this Agreement,
unless such information is (a) already in U.S. Energy’s possession and such
information is not known by U.S. Energy to be subject to another
Confidentiality Agreement, or (b) is or becomes generally available to the
public other than as a result of an unauthorized disclosure by U.S. Energy, its
officers, employees, directors, agents or its advisors, or (c) becomes
available to U.S. Energy on a non-confidential basis from a source which is not
known to be prohibited from disclosing such information to U.S. Energy by
legal, contractual or fiduciary obligation to the supplier, or (d) is required
by U.S. Energy to be disclosed by court order, or (e) is permitted by Client.  All such information shall be and remain the
property of Client unless such information is subject to another
Confidentiality Agreement, and upon the termination of this Agreement, U.S.
Energy shall return all such information upon Client’s request.  Notwithstanding anything to the contrary
herein, U.S. Energy shall not disclose any information which is in any way
related to this Agreement or U.S. Energy’s services hereunder without first
discussing such proposed disclosure with Client.

NOTICES:  Any
formal notice, request or demand which a party hereto may desire to give to the
other respecting this Agreement shall be in writing and shall be considered as
duly delivered as of the postmark date when mailed by ordinary, registered or
certified mail by said party to the addresses listed below. Either party may,
from time-to-time, identify alternate addresses at which they may receive
notice during the term of this Agreement by providing written notice to the
other party of such alternate addresses.

 4
 

 

	
  Client:

  	
   

  	
  Highwater
  Ethanol, LLC

  
	
   

  	
   

  	
  Attn: Brian
  Kletscher

  
	
   

  	
   

  	
  Lamberton, MN

  
	
   

  	
   

  	
   

  
	
  U.S. Energy:

  	
  Bank: US Bank

  	 

	
  (Payment by wire)

  	
   

  	
  Account Name: U.S. Energy Services, Inc.

  	 

	
   

  	
   

  	
  Account #:
  173100561153

  	 

	
   

  	
   

  	
  ABA: 091 0000 22

  	 

	
   

  	
   

  	
   

  	 

	
  (Notices):

  	
   

  	
  U.S. Energy Services, Inc.

  	 

	
   

  	
   

  	
  1000 Superior
  Blvd, Suite 201

  	 

	
   

  	
   

  	
  Wayzata, MN
  55391

  	 

	
   

  	
   

  	
  Attn: Contract
  Administration

  	 

					

v

ASSIGNMENT
OR AMENDMENT:  The
Agreement may not be assigned or amended without the written consent of U.S.
Energy and Client.

APPLICABLE
LAW:  The
Agreement shall be construed in accordance with the laws of the State of
Minnesota.

ENTIRE
AGREEMENT:  This
Agreement constitutes the entire Agreement among the parties pertaining to the
subject matter hereof and supersedes all prior Agreements and understanding
pertaining hereto.

Agreed
to and Accepted by:

Highwater
Ethanol, LLC

	
  By:

  	
   

  	
  /s/ Brian Kletscher

  	
   

  	
   

  
	
   

  	
   

  
	
  Name:

  	
   

  	
  Brian Kletscher

  	
   

  	
   

  
	
  (Print)

  	
   

  
	
  Title:

  	
   

  	
  President

  	
   

  	
   

  
	
   

  	
   

  
	
  Date:

  	
   

  	
  5-29-2006

  	
   

  	
   

  
	
   

  	
   

  
	
  U.S.
  Energy Services, Inc.

  	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
  /s/ Gail McMinn

  	
   

  	
   

  
	
   

  	
   

  
	
  Name:

  	
   

  	
  Gail McMinn

  	
   

  	
   

  
	
  (Print)

  	
   

  
	
   

  	
   

  
	
  Title:

  	
   

  	
  Vice President

  	
   

  	
   

  
	
   

  	
   

  
	
  Date:

  	
   

  	
  6-8-06

  	
   

  	
   

  
											

 

 5
 

EXHIBIT A

AGENCY
AUTHORIZATION

The purpose of this
Agency Authorization (this “Authorization”) is to set forth the authorization
and agreement between U.S. Energy Services, Inc. (“U.S. Energy”) and Highwater
Ethanol, LLC (“Client”) related to the provision of energy supply management
services.

Client and U.S. Energy
agree on the following terms and conditions:

1.               APPOINTMENT AND SCOPE – Client hereby appoints U.S. Energy
as its agent for managing Client’s energy supplies and to deal with third
parties on behalf of Client, in connection with energy-related matters, in U.S.
Energy’s capacity as Client’s agent, including, without limitation, the purchase of energy resources in such
quantity and at such times as Client may authorize in writing, by electronic
communications (e.g., by email), verbally or otherwise (“Energy Procurements”).  U.S. Energy is authorized to contract on
behalf of Client for the acquisition of energy supply, transportation and
distribution.  U.S. Energy hereby accepts
such appointment and agrees to use commercially reasonable efforts to perform
the services required by this Authorization.

2.               AUTHORITY OF U.S. ENERGY TO ALIGN CREDIT – Client authorizes U.S. Energy, in making
Energy Procurements, to align credit from energy suppliers or third parties on
behalf and as an agent of Client, as needed.

3.               AUTHORITY OF U.S. ENERGY TO EXTEND CREDIT – Client hereby agrees that when making
Energy Procurements on behalf of a Client, U.S. Energy may use U.S. Energy
funds to pay suppliers, thereby extending credit directly to Client (and acting
as a “Creditor,” as that term is used in this Authorization).

4.               TERM – The term of this Authorization shall commence as of
the date hereof and shall continue indefinitely until such time as the parties
hereto shall agree in writing to terminate the Authorization.

5.               INDEPENDENT CONTRACTOR – It is
not the intent of the parties hereto to form any partnership or joint venture relationship.  Each party shall, in relation to
its obligations hereunder, act as an independent contractor.

6.               RELEASE OF ENERGY CONSUMPTION
RECORDS AND BILLS - This Agreement serves as
authorization for the release of Client’s energy consumption records and bills
from pipelines and suppliers to U.S. Energy.

7.               AUTHORITY – Each of Assignor and Assignee represents and
warrants to the other that it is fully empowered and authorized to execute and
deliver this Assignment, and the individuals signing this Assignment each
represent and warrant that he or she is fully authorized to do so.

Agreed to and Accepted by:

	
  Highwater Ethanol, LLC

  	
   

  	
   

  	
   

  	
  U.S. Energy Services, Inc.

  	
   

  	
   

  
	
   

  
	
  By:

  	
      /s/ Brian Kletscher

  	
   

  	
   

  	
  By:

  	
      /s/ Gail McMinn

  	
   

  	
   

  
	
   

  
	
  Print
  Name:

  	
     Brian Kletscher

  	
   

  	
   

  	
  Print Name:

  	
     Gail McMinn

  	
   

  	
   

  
	
   

  
	
  Title:

  	
     President

  	
   

  	
   

  	
  Title:

  	
     Vice President

  	
   

  	
   

  
	
   

  
	
  Date:

  	
     5-29-2006

  	
   

  	
   

  	
  Date:

  	
     6-8-06

  	
   

  	
   

  
															

 

 6Exhibit 10.3

BUILDING LEASE

THIS LEASE AGREEMENT, made this 7th day
of June, 2006, between Interstate Power and Light Company  (a wholly owned subsidiary of Alliant Energy
Corporation) an Iowa corporation, hereinafter called the “Company” or “Lessor”,
and Highwater Ethanol LLC, hereinafter called “Lessee,” having its prin­cipal
place of business and office in the City of Lamberton, State of Minnesota.

WITNESSETH:

In consideration of the following
obligations and agreements to be performed by the parties herein, the Lessor
hereby leases unto the Lessee a building(s), situated in the City of Lamberton,
in the County of Redwood, State of Minnesota, described as follows:

Approximately
1012 square feet in the west half of the building at 205 S. Main Street, Lamberton,
Minnesota in accordance with the map which is attached and made a part hereof.

PURPOSE:

1.               The said premises shall be used
by Lessee for office use only.

TERM:

2.               The Lessee is to have and to hold
the same for the term of approximately One (1) year from June 15, 2006 to June
30, 2007, and thereafter until either party shall give the other party thirty
(30) days written notice of its desire to terminate the lease; and until so
terminated, all conditions of this lease shall remain in full force and effect.  No conduct of Company shall be deemed a
waiver of the right to terminate this lease.

NOTICE:

3.               Any written notice given by the
Company to the Lessee shall be deemed to be properly served if the same be
delivered to the Lessee, or one of Lessee’s agents, or if the Lessee or Lessee’s
agents cannot be located, if posted on said premises, or if mailed, postpaid,
addressed to the Lessee at Lessee’s last known place of business.  Any written notice given by the Lessee to the
Company shall be deemed properly served if the same be delivered to the
Company, or to one of the Company’s officers, or if mailed, postpaid, addressed
to the Lessor at Lessor’s last known business address.

RENT:

4.               The Lessee agrees to pay to
Lessor as rental for said premises the sum of Four hundred twenty-one and
67/100 ($421.67) per month on or before the first day of each month.  Lessor may on the anniversary date of this
lease and each subsequent year thereafter, review and adjust the rental amount
in accordance with the then existing economic conditions.  Lessee will be advised of any such increase
in writing not less than 30 days prior to the effective date.  Said rent payments shall be delivered to the
Company, Attention Real Estate and Right of Way Services, P.O. Box 769, Dubuque,
Iowa 52001.

 1
 

 

REFUND:

5.               Any deposits or rent payments
made in advance for a period extending beyond the termination of this lease
shall be refunded to the Lessee, unless such termination shall be on account of
violation or nonfulfillment of any of the terms of this lease by the Lessee, or
on account of abandonment of said premises by the Lessee, in which case the
amount(s) paid in advance shall be retained by the Company to the extent of its
actual damages.

TAXES:

6.               The Lessor shall pay all taxes,
licenses and other charges that may be assessed or levied on the premises.

SUCCESSORS AND ASSIGNS:

7.               This lease shall be binding upon
the heirs, executors, administrators, successors and assigns of the parties
hereto.  However, the lease shall not be
assigned or in any manner transferred nor said premises or any part thereof
sublet, used or occupied by any party other than the Lessee without the written
consent of the Lessor.  Such consent
shall not be unreasonably withheld.

ABANDONMENT:

8.               The failure of the Lessee to
occupy or use said premises for the purpose herein mentioned for sixty- (60)
days at any one time shall be deemed an abandonment thereof.  An abandonment of said premises by the Lessee
shall, at the option of the Company, operate as an absolute and immediate
termination of this lease without notice.

IMPROVEMENTS:

9.               The Company hereby gives to the Lessee the privilege
of erecting, maintaining and using on said premises, suitable structures for
the purposes set forth in Paragraph One (1) hereof, provided that such
structures first shall be approved by the Company, and be in compliance with
all laws and other local, county, state and federal laws and regulations, and
thereafter maintained by the Lessee to the satisfaction of the Company and in
compliance with all laws.  Lessee agrees
that failure to comply with laws relating to improvements may, at the Lessor’s
option, result in termination of the Lease.

REMOVAL OF IMPROVEMENTS AND
TERMINATION:

10.             Upon the termination of this lease
in any manner, the Lessee shall remove all improvements placed on the premises
and restore the premises to its former state unless otherwise agreed to by the
parties and shall deliver to the Company the possession of said premises.  Should the Lessee, within ten (10) days after
the date of termination of this lease, fail to make such removal or
restoration, then the Company may, at its election, either remove all said
improve­ments and restore the premises to their former state at the sole cost
of the Lessee, or may take and hold said improvements as its sole property.

 2
 

 

CONDITION OF PREMISES:

11.             The Lessee shall, at all times,
keep the premises in a safe, clean and sanitary condition, and shall not
mutilate, damage, misuse, alter or permit waste thereon.

RIGHT OF INSPECTION AND ENTRY:

12.             The premises shall be open at all
reasonable times for inspection and entry by the Company, its agents, employees
and authorized applicants for purchase or lease thereof, or for any other law­ful
purpose.  Specifically, Company may, upon
notice to Lessee, perform any environmental assessment, studies or testing it
decides necessary to investigate access and remediate on environmental
conditions on the premises.

ADVERTISING:

13.             No advertising shall be placed upon
the premises without the written approval of the Company.

LAWS AND REGULATIONS:

14.             The Lessee shall, without cost to
the Company, comply with all applicable laws, rules, regulations and ordinances
of competent authorities affecting said premises including, but not limited to
those relating to the environment.  The
parties agree that the laws of the State of Minnesota shall govern this lease
and venue shall be in Redwood County District Court.

MISCELLANEOUS CHARGES:

15.             Lessor shall pay utility charges
including, but not limited to water, lighting, and heating. Lessee shall pay telephone,
internet, refuse, janitorial and other miscel­laneous charges that may be
levied or assessed by reason of the occupation or use of the premises by
Lessee.

CARE AND MAINTENANCE:

16.             Lessor shall keep the following in
good repair: roof, exterior walls, foundation, sewer, plumbing, heating,
wiring, air conditioning, windows and window glass, parking area, driveways,
and sidewalks as applicable, except when the same area occasioned by the misuse
or negligence of Lessee, its agents, employees or invitees. Lessor agrees to
remove all snow and ice and other obstructions from the sidewalk on or abutting
the premises in addition to providing for all lawn mowing, lawn care and the
like. Lessor shall not be liable for failure to make any repairs or
replacements unless Lessor fails to do so within a reasonable time after
written notice from Lessee.

Lessee shall maintain the
premises in a reasonable safe, serviceable, clean and presentable condition,
and except for the repairs and replacements provided to be made by Lessor in
subparagraph above, shall make all repairs, replacements and improvements to
the premises, including all changes, alterations, or additions ordered by any
lawfully constituted government authority directly related to Lessee’s use of
the premises.  Lessee shall make no
structural changes or alterations without the prior written consent of Lessor.

 3
 

 

LIABILITY:

17.             The Lessee agrees to defend,
indemnify and save the Company harmless from any and all claims and expenses,
including reason­able attorney’s fees and claims of third parties, that may
arise or may be made for death or injury to employees of the Company, or loss
or damage to the Company’s property, or to other persons or their proper­ty, by
reason or in consequence of the occupancy or use of the premises by the Lessee.

RESTRICTIONS ON LESSEE:  HAZARDOUS SUBSTANCES

18.             Lessee shall not cause or permit
any Hazardous Substance to be used, stored, generated, or disposed of on or in
the premises by Lessee, Lessee’s agents, employees, contractors or invitees,
without first obtaining Lessor’s written consent, which may be withheld at the
Lessor’s sole and absolute discretion. 
If Hazardous Substances are used, stored, generated, or disposed of on
or in the premises, or if the premises become contaminated in any manner for
which Lessee is legally liable, Lessee shall indemnify, defend, and hold
harmless the Lessor from any and all claims, damages, fines, judgments,
penalties, costs, liabilities, or losses (including, without limitation, a
decrease in value of the premises or the building(s) of which they are a part,
damages because of adverse impact on marketing of the space, and any and all
sums paid for settlement of claims, attorneys’, consultant, and expert fees)
arising during or after the lease term and arising as a result of such
contamination by Lessee.  This
indemnification includes, without limitation, any and all costs incurred
because of any investigation of the site or any cleanup, removal, or restoration
mandated by a federal, state, or local agency or political subdivision,
specifically including costs incurred pursuant to the Comprehensive
Environmental Response, Compensation, & Liability Act (“CERCLA” or “Superfund”)
42 U.S.C. §9601 et seq.  In addition, if
Lessee causes or permits the presence of any Hazardous Substance on the
premises and this results in contamination, Lessee shall promptly, at its sole
expense, take any and all necessary actions to return the premises to the
condition existing before the presence of any such Hazardous Substance on the
premises, provided, however, that Lessee shall first obtain Lessor’s approval
for any such remedial action.

As used herein, “Hazardous Substance” means any
substance that is toxic, ignitable, reactive, or corrosive and which is
regulated by any local government, the State of Iowa, or the United States
government.  “Hazardous Substance”
includes any and all material or substances that are defined as “hazardous
waste,” “extremely hazardous waste,” or a “hazardous substance,” pursuant to
state, federal, or local governmental law. 
“Hazardous Substance” includes but is not restricted to asbestos,
polychlorinated biphenyls (“PCBs”), and petroleum.

INSURANCE REQUIREMENTS:

19.             The Lessee shall maintain Commercial
General Liability insurance including, but not limited to Contractual Liability
coverage through­out the term of this lease and any extensions thereof, so as
to protect and indemnify Company from any and all suits or claims arising out
of Lessee’s occupancy or use of the premises. 
Said insurance
shall name Lessor as an additional insured. 
In addition, such insurance shall contain limits not less than $1,000,000
combined single-limit personal injury and property damage, and Fire Legal
Liability sublimits of $500,000.

 4
 

 

Lessee shall maintain all risk
property insurance for the premises in an amount acceptable to Lessor.  Lessee agrees that such insurance shall name
Lessor as Loss Payee and waive subrogation against Lessor.

Lessee shall provide Company with
Certificates of Insurance which shall be on file with Company and remain in
effect for the duration of this lease. 
All Certificates of Insurance shall state that prior to cancellation or
non-renewal, thirty- (30) days written notice shall be given to Company.  Lessee’s failure to meet this insurance
requirement shall not relieve the Lessee of its responsibilities under this
lease.

FORFEITURE:

20.             Any breach by the Lessee of any
covenant to be kept or condition to be performed herein set forth, shall be
suffi­cient cause for the immediate termination by the Company of this lease.

INSOLVENCY OR BANKRUPTCY:

21.             If the Lessee at any time during the continuance of this
lease agree­ment should become insolvent or bankrupt, or if Lessee’s affairs
should be placed in the hands of a Receiver, then this lease, at the option of
the Company, shall terminate and the Company shall have the right to resume and
retake possession of said premises without any accountability whatso­ever to
the Lessee or to Lessee’s estate.

LESSOR’S LIEN AND SECURITY
INTEREST:

22.             Said Lessor shall have in addition
to the lien given by law, a security interest as provided by the Uniform
Commercial Code of Iowa, upon all personal property and all substitutions
therefor, kept and used on said premises by Lessee.  Lessor may proceed at law or in equity with
any remedy provided by law or by this lease for the recovery of rent, or for
termination of this lease because of Lessee’s default in its performance.

RIGHTS CUMULATIVE:

23.             The various rights, powers,
options, elections and remedies of either party, provided in this lease, shall
be construed as cumulative and no one of them as exclusive of the others, or
exclusive of any rights, remedies or priorities allowed either party by law,
and shall in no way affect or impair the right of either party to pursue any
other equitable or legal remedy to which either party may be entitled as long
as any default remains in any way unremedied, unsatisfied or undischarged.

PRIOR LEASES:

24.             The parties hereto, by the
execution of this agree­ment, hereby terminate any prior leases of the premises
herein demised.

 5
 

 

SEVERABILITY:

25.             Any provision of this lease which
conflicts with any law, rule, regulation or ordinance of competent authorities
affecting said premises, shall be suspended and shall be inoperative so long as
such law or ordinance remains in effect. 
In the event there is no prohibition against any provision of this
lease, any such provisions shall remain in full force and effect during the
term of this Agreement.

IN WITNESS WHEREOF, the parties
hereto have executed in duplicate this lease agreement on the day and year
first above written.

INTERSTATE POWER AND LIGHT COMPANY                        HIGHWATER
ETHANOL LLC

Lessee

(a wholly owned subsidiary of Alliant Energy Corporation)

	
  By

  	
      /s/ Vern
  Gebhart

  	
   

  	
  By

  	
   

  	
  /s/ Brian Kletscher

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  

  
	
   

  
	
  Address:

  	
   

  	
  P.O. Box 769

  	
   

  	
  Address:

  	
   

  	
  P.O. Box 96

  	
   

  
	
  City:

  	
   

  	
  Dubuque

  	
   

  	
  City:

  	
    Lamberton

  	
   

  	
   

  
	
  State:

  	
   

  	
  IA

  	
  Zip

  	
  52001

  	
   

  	
  State:

  	
   

  	
  MN

  	
  Zip

  	
  56152

  	
   

  
	
  Contact Phone:

  	
     563-584-7350

  	
   

  	
   

  	
  Phone:

  	
  507-752-7036 (w) 507-828-1229 (c)

  	
   

  
																									

 

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