Document:

Filed by Bowne Pure Compliance

 

Exhibit 10.35

TERM REVOLVING NOTE

			
	 	 	 
	$20,000,000.00
	 	November 30, 2007

1. FOR VALUE RECEIVED, HOMELAND ENERGY SOLUTIONS, LLC, an Iowa limited liability company
(“Borrower”), hereby promises to pay to the order of HOME FEDERAL SAVINGS BANK, a federally
chartered stock savings bank organized under the laws of the United States (“Lender”), the
principal sum of Twenty Million and No/100ths ($20,000,000.00) Dollars, or so much thereof as may
be advanced to, or for the benefit of, Borrower and be outstanding, with interest thereon, to be
computed on each advance from the date of its disbursement as set forth herein, and pursuant to
that certain Master Loan Agreement of even date herewith by and between Lender and Borrower (as the
same may be amended, modified, supplemented, extended or restated from time to time, the “MLA”),
and pursuant to that certain Second Supplement to the MLA, of even date herewith, by and between
Lender and Borrower (as it may be amended, modified, supplemented, extended or restated from time
to time, the “Second Supplement”), and which remains unpaid, in lawful money of the United States
and immediately available funds. This Term Revolving Note (this “Note”) is issued pursuant to the
terms and provisions of the MLA and the Second Supplement and is entitled to all of the benefits
provided for in the MLA and the Second Supplement. All capitalized terms used and not defined
herein shall have the meanings assigned to them in the MLA and the Second Supplement.

2. The outstanding principal balance of this Note shall bear interest at a variable rate
determined by Lender to be 325 basis points above the LIBOR Rate in effect on the date of the first
Advance made to Borrower under this Note. Notwithstanding the foregoing, the rate of interest
under this Note may be adjusted by Lender pursuant to the provisions of the MLA, the Second
Supplement and this Note.

3. “LIBOR Rate” means the rate (rounded upward to the nearest sixteenth and adjusted for
reserves required on Eurocurrency Liabilities (as hereinafter defined) for banks subject to FRB
Regulation D (as hereinafter defined) or required by any other federal law or regulation, quoted by
the British Bankers Association (the “BBA”) at 11:00 a.m. London time two Banking Days (as
hereinafter defined) before the commencement of the Interest Period for the offering of U.S. Dollar
deposits in the London interbank market for an Interest Period of one month, as published by
Bloomberg or another major information vendor listed on BBA’s official website. “Banking Day”
shall mean a day on which Lender is open for business, dealings in U.S. dollar deposits are being
carried out in the London interbank market, and banks are open for business in New York City and
London, England. “Eurocurrency Liabilities” has the meaning as set forth in FRB Regulation D.
“FRB Regulation D” means Regulation D as promulgated by the Board of Governors of the Federal
Reserve System, 12 CFR Part 204, as amended from time to time.

4. The rate of interest due hereunder shall initially be determined as of the Conversion Date
and shall thereafter be adjusted, as and when, the LIBOR Rate changes. All such adjustments to the
rate of interest shall be made and become effective as of the first day of the month following the
date of any change in the LIBOR Rate and shall remain in effect until and including the day
immediately preceding the next such adjustment (each such day hereinafter being referred to as an
“Adjustment Date”). All such adjustments to said rate shall be made and become effective as of the
Adjustment Date, and said rate as adjusted shall remain in effect until and including the day
immediately preceding the next Adjustment Date. Interest hereunder shall be computed on the basis
of a year of three hundred sixty (360) days, but charged for actual days principal is outstanding.

 

 

 

5. Notwithstanding anything to the contrary in the MLA, the Second Supplement and this Note,
no Advances will be made to Borrower under this Note until the Availability Date as specified in
the Second Supplement.

6. Beginning on the first (1st) day of the first calendar month following the month
in which funds have been advanced to Borrower hereunder, and continuing on the first
(1st) day of each succeeding month thereafter until the Maturity Date, Borrower shall
make monthly payments of accrued interest. If any payment date is not a Business Day, then the
principal and interest installment then due shall be paid on the next Business Day and shall
continue to accrue interest until paid.

7. The outstanding principal balance hereof, together with all accrued interest, if not paid
sooner, shall be due and payable in full on the fifth (5th) anniversary date of the
Conversion Date (the “Maturity Date”).

8. All payments and prepayments shall, at the option of Lender, be applied first to any costs
of collection, second to any late charges, third to accrued interest and the remainder thereof to
principal.

9. Borrower may, at anytime and from time to time, upon thirty (30) days advance written
notice to Lender, prepay the outstanding principal amount of this Note in whole or in part with
accrued interest to the date of such prepayment on the amount prepaid, without penalty or premium,
except as, and to the extent, specifically provided in Section 2.10 of the MLA. This Note is
subject to mandatory prepayment, at the option of Lender, as provided in the MLA.

10. In addition to the rights and remedies set forth in the MLA and the Second Supplement:
(i) if Borrower fails to make any payment to Lender when due under this Note, then at Lender’s
option in each instance, such obligation or payment shall bear interest from the date due to the
date paid at 2% per annum in excess of the rate of interest that would otherwise be applicable to
such obligation or payment under this Note; (ii) upon the occurrence and during the continuance of
an Event of Default beyond any applicable cure period, if any, at Lender’s option in each instance,
the unpaid balances under this Note shall bear interest from the date of the Event of Default or
such later date as Lender shall elect at 2% per annum in excess of the rate(s) of interest that
would otherwise be in effect under the terms of this Note; (iii) after the Maturity Date, whether
by reason of acceleration or otherwise, the unpaid principal balance of this Note (including
without limitation, principal, interest, fees and expenses) shall automatically bear interest at 2%
per annum in excess of the rate of interest that would otherwise be in effect under this Note.
Interest payable at the Default Rate shall be payable from time to time on demand or, if not sooner
demanded, on the last day of each calendar month.

11. If Borrower fails to make any payment to Lender within ten (10) days of the due date
thereof, Borrower shall, in addition to such amount, pay a late charge equal to five percent (5%)
of the amount of such payment.

12. This Note is secured by, among other instruments, a Mortgage, Security Agreement and
Financing Statement covering various parcels of real property, fixtures, and personal property
located in Chickasaw County, Iowa (the “Mortgage”). In the event any such security is found to be
invalid for whatever reason, such invalidity shall constitute an event of default hereunder. All
of the agreements, conditions, covenants, provisions, and stipulations contained in the Mortgage, or any
instrument securing this Note are hereby made a part of this Note to the same extent and with the
same force and effect as if they were fully set forth herein. It is agreed that time is of the
essence of this Note.

 

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13. Upon the occurrence at any time of an Event of Default or at any time thereafter, the
outstanding principal balance hereof plus accrued interest hereon plus all other amounts due
hereunder shall, at the option of Lender, be immediately due and payable, without notice or demand
and Lender shall be entitled to exercise all remedies provided in this Note, the MLA, the Second
Supplement, or any of the Loan Documents.

14. Upon the occurrence at any time of an Event of Default or at any time thereafter, Lender
shall have the right to set off any and all amounts due hereunder by Borrower to Lender against any
indebtedness or obligation of Lender to Borrower.

15. Borrower promises to pay all reasonable costs of collection of this Note, including, but
not limited to, reasonable attorneys’ fees paid or incurred by Lender on account of such
collection, whether or not suit is filed with respect thereto and whether or not such costs are
paid or incurred, or to be paid or incurred, prior to or after the entry of judgment.

16. Demand, presentment, protest and notice of nonpayment and dishonor of this Note are hereby
waived.

17. This Note shall be governed by and construed in accordance with the laws of the State of
Minnesota.

18. Borrower hereby irrevocably submits to the jurisdiction of any Minnesota state court or
federal court over any action or proceeding arising out of or relating to this Note, the MLA and
any instrument, agreement or document related hereto or thereto, and Borrower hereby irrevocably
agrees that all claims in respect of such action or proceeding may be heard and determined in such
Minnesota state or federal court. Borrower hereby irrevocably waives, to the fullest extent it may
effectively do so, the defense of an inconvenient forum to the maintenance of such action or
proceeding. Nothing in this Note shall affect the right of Lender to bring any action or
proceeding against Borrower or its property in the courts of any other jurisdiction to the extent
permitted by law.

{SIGNATURE PAGE TO FOLLOW}

 

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SIGNATURE PAGE TO

TERM REVOLVING NOTE

EXECUTED AND DELIVERED BY

HOMELAND ENERGY, LLC

TO

HOME FEDERAL SAVINGS BANK

DATED: November 30, 2007

	 	 	 	 	 
	 	HOMELAND ENERGY SOLUTIONS, 

LLC, an Iowa limited liability company

 	 
	 	/s/ Stephen K. Eastman
 	 
	 	By:  Stephen K. Eastman 	 
	 	Its:  President 	 
	 

 

- 4 -Filed by Bowne Pure Compliance

 

Exhibit 10.36

REVOLVING LINE OF CREDIT NOTE

			
	 	 	 
	$6,000,000.00
	 	November 30, 2007

1. FOR VALUE RECEIVED, HOMELAND ENERGY SOLUTIONS, LLC, an Iowa limited liability company
(“Borrower”), hereby promises to pay to the order of HOME FEDERAL SAVINGS BANK, a federally
chartered stock savings bank organized under the laws of the United States (“Lender”), the
principal sum of Six Million and No/100ths ($6,000,000.00) Dollars, or so much thereof as may be
advanced to, or for the benefit of, Borrower and be outstanding, with interest thereon, to be
computed on each advance from the date of its disbursement as set forth herein, and pursuant to
that certain Master Loan Agreement of even date herewith by and between Lender and Borrower (as the
same may be amended, modified, supplemented, extended or restated from time to time, the “MLA”),
and pursuant to that certain Third Supplement to the MLA, of even date herewith, by and between
Lender and Borrower (as it may be amended, modified, supplemented, extended or restated from time
to time, the “Third Supplement”), and which remains unpaid, in lawful money of the United States
and immediately available funds. This Revolving Line of Credit Note (this “Note”) is issued
pursuant to the terms and provisions of the MLA and the Third Supplement and is entitled to all of
the benefits provided for in the MLA and the Third Supplement. All capitalized terms used and not
defined herein shall have the meanings assigned to them in the MLA and the Third Supplement.

2. The outstanding principal balance of this Note shall bear interest at a variable rate
determined by Lender to be 325 basis points above the LIBOR Rate in effect on the date of the first
Advance made to Borrower under this Note. Notwithstanding the foregoing, the rate of interest
under this Note may be adjusted by Lender pursuant to the provisions of the MLA, the Third
Supplement and this Note.

3. “LIBOR Rate” means the rate (rounded upward to the nearest sixteenth and adjusted for
reserves required on Eurocurrency Liabilities (as hereinafter defined) for banks subject to FRB
Regulation D (as hereinafter defined) or required by any other federal law or regulation, quoted by
the British Bankers Association (the “BBA”) at 11:00 a.m. London time two Banking Days (as
hereinafter defined) before the commencement of the Interest Period for the offering of U.S. Dollar
deposits in the London interbank market for an Interest Period of one month, as published by
Bloomberg or another major information vendor listed on BBA’s official website. “Banking Day”
shall mean a day on which Lender is open for business, dealings in U.S. dollar deposits are being
carried out in the London interbank market, and banks are open for business in New York City and
London, England. “Eurocurrency Liabilities” has the meaning as set forth in FRB Regulation D.
“FRB Regulation D” means Regulation D as promulgated by the Board of Governors of the Federal
Reserve System, 12 CFR Part 204, as amended from time to time.

4. The rate of interest due hereunder shall initially be determined as of the Availability
Date and shall thereafter be adjusted, as and when, the LIBOR Rate changes. All such adjustments to
the rate of interest shall be made and become effective as of the first day of the month following
the date of any change in the LIBOR Rate and shall remain in effect until and including the day
immediately preceding the next such adjustment (each such day hereinafter being referred to as an
“Adjustment Date”). All such adjustments to said rate shall be made and become effective as of the
Adjustment Date, and said rate as adjusted shall remain in effect until and including the day
immediately preceding the next Adjustment Date. Interest hereunder shall be computed on the basis
of a year of three hundred sixty (360) days, but charged for actual days principal is outstanding.

 

 

 

5. Notwithstanding anything to the contrary in the MLA, the Third Supplement and this Note, no
Advances will be made to Borrower under this Note until the Availability Date as specified in the
Third Supplement.

6. Beginning on the first (1st) day of the first calendar month following the
Availability Date and continuing on the first (1st) day of each succeeding month
thereafter until the Revolving Line of Credit Loan Maturity Date, Borrower shall make monthly
payments of accrued interest.

7. The outstanding principal balance hereof, together with all accrued interest, if not paid
sooner, shall be due and payable in full on the 364th day from the Conversion Date (the
“Revolving Line of Credit Loan Maturity Date”).

8. All payments and prepayments shall, at the option of Lender, be applied first to any costs
of collection, second to any late charges, third to accrued interest and the remainder thereof to
principal.

9. This Note may be prepaid at any time, at the option of Borrower, either in whole or in
part, subject to the obligation of Borrower to compensate Lender for any loss, cost or expense as a
result of such prepayment as set forth in the MLA and the Third Supplement. This Note is subject
to mandatory prepayment, at the option of Lender, as provided in the MLA and the Third Supplement.

10. In addition to the rights and remedies set forth in the MLA and the Third Supplement: (i)
if Borrower fails to make any payment to Lender when due under this Note, then at Lender’s option
in each instance, such obligation or payment shall bear interest from the date due to the date paid
at 2% per annum in excess of the rate of interest that would otherwise be applicable to such
obligation or payment under this Note; (ii) upon the occurrence and during the continuance of an
Event of Default beyond any applicable cure period, if any, at Lender’s option in each instance,
the unpaid balances under this Note shall bear interest from the date of the Event of Default or
such later date as Lender shall elect at 2% per annum in excess of the rate(s) of interest that
would otherwise be in effect under the terms of this Note; (iii) after the Revolving Loan Maturity
Date, whether by reason of acceleration or otherwise, the unpaid principal balance of this Note
(including without limitation, principal, interest, fees and expenses) shall automatically bear
interest at 2% per annum in excess of the rate of interest that would otherwise be in effect under
this Note. Interest payable at the Default Rate shall be payable from time to time on demand or,
if not sooner demanded, on the last day of each calendar month.

11. If Borrower fails to make any payment to Lender within ten (10) days of the due date
thereof, Borrower shall, in addition to such amount, pay a late charge equal to five percent (5%)
of the amount of such payment.

12. This Note is secured by, among other instruments, a Mortgage, Security Agreement and
Financing Statement covering various parcels of real property, fixtures, and personal property
located in Chickasaw County, Iowa. In the event any such security is found to be invalid for
whatever reason, such invalidity shall constitute an event of default hereunder. All of the
agreements, conditions, covenants, provisions, and stipulations contained in the Mortgage, or any
instrument securing this Note are hereby made a part of this Note to the same extent and with the
same force and effect as if they were fully set forth herein. It is agreed that time is of the
essence of this Note.

 

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13. Upon the occurrence at any time of an Event of Default or at any time thereafter, the
outstanding principal balance hereof plus accrued interest hereon plus all other amounts due
hereunder shall, at the option of Lender, be immediately due and payable, without notice or demand
and Lender shall be entitled to exercise all remedies provided in this Note, the MLA, the Third
Supplement, or any of the Loan Documents.

14. Upon the occurrence at any time of an Event of Default or at any time thereafter, Lender
shall have the right to set off any and all amounts due hereunder by Borrower to Lender against any
indebtedness or obligation of Lender to Borrower.

15. Borrower promises to pay all reasonable costs of collection of this Note, including, but
not limited to, reasonable attorneys’ fees paid or incurred by Lender on account of such
collection, whether or not suit is filed with respect thereto and whether or not such costs are
paid or incurred, or to be paid or incurred, prior to or after the entry of judgment.

16. Demand, presentment, protest and notice of nonpayment and dishonor of this Note are hereby
waived.

17. This Note shall be governed by and construed in accordance with the laws of the State of
Minnesota.

18. Borrower hereby irrevocably submits to the jurisdiction of any Minnesota state court or
federal court over any action or proceeding arising out of or relating to this Revolving Lien of
Credit Note, the MLA and any instrument, agreement or document related hereto or thereto, and
Borrower hereby irrevocably agrees that all claims in respect of such action or proceeding may be
heard and determined in such Minnesota state or federal court. Borrower hereby irrevocably waives,
to the fullest extent it may effectively do so, the defense of an inconvenient forum to the
maintenance of such action or proceeding. Nothing in this Note shall affect the right of Lender
to bring any action or proceeding against Borrower or its property in the courts of any other
jurisdiction to the extent permitted by law.

	 	 	 	 	 
	 	HOMELAND ENERGY SOLUTIONS, 

LLC, an Iowa limited liability company

 	 
	 	/s/ Stephen K. Eastman
 	 
	 	By:  Stephen K. Eastman 	 
	 	Its:  President 	 
	 

 

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