Document:

Exhibit

 AMENDED AND RESTATED 
TERM REVOLVING NOTE
    
$30,000,000.00                                    June 29, 2017

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 Thirty Million and No/100ths ($30,000,000.00) 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 Amended and Restated 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 which remains unpaid, in lawful money of the United States and immediately available funds.  This Amended and Restated 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.  This Note amends, restates and replaces but is not a novation of that certain Term Revolving Note of the Borrower in the amount of $20,000,000.00 dated November 30, 2007. 

2.    The outstanding principal balance of this Note shall bear interest at a variable rate determined by Lender to be 310 basis points above the LIBOR Rate in effect on the date of the first Advance made to Borrower under this Note.  In addition to the forgoing, the Borrower agrees to pay to the Lender an unused commitment fee on the average daily unused portion of Term Revolving Loan Commitment from the Closing Date until the Maturity Date at the rate of thirty (30) basis points on a per annum basis, payable quarterly in arrears on each Quarterly Payment Date during the term of the Term Revolving Loan Commitment and on the Maturity Date. For purposes of this Agreement, the unused portion of the Term Revolving Loan Commitment for any measurement period shall be the positive difference, if any, of (a) the average daily amount of the Term Revolving Loan Commitment, minus (b) the average daily Outstanding Credit.  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” (London Interbank Offered 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 Closing 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 December 31, 2022 (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 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 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.  

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 immediately follows.]

BORROWER:
                    
HOMELAND ENERGY SOLUTIONS,        
LLC, an Iowa limited liability company        
                            
                            

/s/ James Broghammer        
By: James Broghammer                    
Title:  President/CEO                    

STATE OF IOWA            )
                            ) ss.
COUNTY OF    Chickasaw        )

On this 29th day of June, 2017, before me a Notary Public within and for said County, personally appeared James Broghammer, to me known, who being by me duly sworn, did say that he is the President of Homeland Energy Solutions, LLC, the limited liability company named in the foregoing instrument, and that said instrument was signed on behalf of said company by authority of its board and as the free act and deed of said company.

/s/ Katherine J. Balk        
Notary Public

[Signature page to Amended and Restated Term Revolving Note dated June 29, 2017]Exhibit

AMENDED AND RESTATED
FOURTH SUPPLEMENT
TO MASTER LOAN AGREEMENT
(TERM LOAN)

THIS AMENDED AND RESTATED FOURTH SUPPLEMENT TO MASTER LOAN AGREEMENT (this “Fourth Supplement”) is made and entered into as of June 29, 2017 (the “Closing Date”), by and between HOME FEDERAL SAVINGS BANK (“Lender”) and HOMELAND ENERGY SOLUTIONS, LLC, an Iowa limited liability company (“Borrower”), and supplements and incorporates all of the provisions of that certain Amended and Restated Master Loan Agreement, of even date herewith, between Lender and Borrower (as the same may be amended, modified, supplemented, extended or restated from time to time, the “MLA”).  This Fourth Supplement amends, restates and replaces, but is not a novation of that certain Fourth Supplement to Master Loan Agreement dated as of February 28, 2014, between Borrower and Lender.  
1.    Definitions. As used in this Fourth Supplement, the following terms shall have the following meanings.  Capitalized terms used and not otherwise defined in this Fourth Supplement shall have the meanings attributed to such terms in the MLA.  Terms not defined in either this Fourth Supplement or the MLA shall have the meanings attributed to such terms in the Uniform Commercial Code, as enacted in the State of Minnesota, as amended from time to time. 
“Term Loan” means the $30,000,000.00 term loan extended to the Borrower by the Lender under the Term Note, this Fourth Supplement, and the MLA, as the same may be amended, restated, extended, replaced or otherwise modified from time to time. 
“Term Note” means that certain Term Note of even date herewith in the original principal amount of $30,000,000.00 evidencing the Term Loan, as the same may be amended, restated, extended, replace or otherwise modified from time to time.
 “Maturity Date” means December 31, 2022.
“Monthly Payment Date” means the first (1st) day of each calendar month.  
“Bi-Annual Payment Date” means the last day of each June and December during the term of the MLA and this Fourth Supplement.
2.    Term Loan.  On the terms and conditions set forth in the MLA, this Fourth Supplement, and the Term Note, Lender agrees on the date of this Fourth Supplement to make a term loan to the Borrower in the amount of $30,000,000.00. 
		
	a.
	Term.  The term of the Term Loan shall run for a period beginning on the Closing Date and end on the Maturity Date.  On the Maturity Date, the unpaid principal balance of the Term Loan, all accrued and unpaid interest thereon, and any and all other amounts due and owing hereunder or under any other Loan Document relating to the Term Loan shall be due and payable in full.

		
	b.
	Purpose.  The proceeds of the Term Loan may be used by Borrower to refinance certain indebtedness owing to the Lender on the Closing Date and for costs associated with the construction of the Project (as such term is defined in the MLA).  The Borrower agrees that the proceeds of the Term Loan are to be used only for the purposes set forth in this Section 2(b).

		
	c.
	Interest Rate.  Subject to the terms and conditions contained in the MLA, the Term Note, and this Fourth Supplement, the Term Loan shall bear interest at a fixed rate per annum equal to 4.79% (Lender’s cost of funds on the Closing Date - 1.89% plus 290 basis points).  The computation of interest, amortization, maturity and other terms and conditions of the Term Loan shall be as provided in the MLA and the Term Note, provided, however, that in no event shall the applicable rate of interest on the Term Loan exceed the Maximum Rate.  

		
	d.
	Payments.  Beginning on August 1, 2017, and continuing on each Monthly Payment Date thereafter until the Maturity Date, the Borrower shall pay to the Lender monthly payments of accrued interest on the outstanding principal balance of the Term Loan.  Beginning on June 30, 2018, and continuing on each Bi-Annual Payment Date thereafter until the Maturity Date, the Borrower shall pay to the Lender equal payments of principal in the amount of Three Million and no/100 dollars ($3,000,000.00).  Each principal payment on the Term Loan shall include payment of accrued and unpaid interest on the Term Loan through the date of such payment. The outstanding principal balance of the Term Loan, together with all accrued interest, if not paid sooner, shall be due and payable in full on the Maturity Date.   

		
	e.
	Prepayment.  Borrower may, at any time and from time to time, upon thirty (30) days advance written notice to Lender, prepay the outstanding amount of the Term Loan 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 this Section.  In the event that the Term Loan is refinanced at any time during the first thirty six (36) months following the Closing Date, Borrower shall pay a prepayment fee for the amount(s) refinanced equal to the “Make Whole Prepayment Fee” (defined below).  The prepayment fee shall be due and payable for each such advance payment made by Borrower, whether made voluntarily or involuntarily, including any prepayment effected by Lender’s acceleration of the Term Loan.  Any prepayment does not otherwise affect Borrower’s obligation to pay any other fees payable under the MLA, this Fourth Supplement or the Term Note.

The “Make Whole Prepayment Fee” shall be an amount calculated as follows: compare the Initial Reference Rate to the Final Reference Rate; (A) if the Initial Reference Rate is less than or equal to the Final Reference Rate, the prepayment fee is zero ($0.00); (B) if the Initial Reference Rate is greater than the Final Reference Rate, the prepayment fee shall be calculated as follows: (i) calculate an amortization schedule using the Initial Reference Rate, the amount of the principal prepayment, the prepayment date and the Maturity Date; because the “Fee End Date” (the third 

anniversary of the Closing Date) is prior to the Maturity Date, for purposes of the calculation it is assumed that all scheduled repayments of principal due on or after the Fee End Date are paid on the Fee End Date; (ii) calculate the interest payment which will accrue on the advance payment of principal through the Fee End Date at the Initial Reference Rate (“Initial Interest Amounts”); (iii) calculate the interest payment which will accrue on the advance payment of principal through the Fee End Date at the Final Reference Rate (“Final Interest Amounts”); (iv) calculate the “Differential Interest Amount” for each interest payment due through the Fee End Date by subtracting the Final Interest Amount from the Initial Interest Amount for each such payment; and (v) calculate the discounted present value of each Differential Interest Amount using the Final Reference Rate as the discount rate.  The prepayment fee shall be the sum of the discounted present value of each Differential Interest Amount.  As used in this subsection, “Initial Reference Rate” means the annualized interest rate charged to Borrower on the Term Loan on the proposed prepayment date; and “Final Reference Rate” means the annualized interest rate Lender would allocate to fund a new advance, on the date of prepayment, with similar scheduled repayment of principal from the time of the advance payment through the Fee End Date, assuming all scheduled repayments of principal due on or after the Fee End Date are paid on the Fee End Date. Any prepayment does not otherwise affect Borrower’s obligation to pay any fees due under this Agreement. No prepayment fee shall be due to Lender for advance payments of principal made after the Fee End Date. 
3.    Default Interest.  In addition to the rights and remedies set forth in the MLA:  (i) if the Borrower fails to make any payment to Lender when due, 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; (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 of the Loan 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 of interest that would otherwise be in effect on the Loan under the terms of the Term Note; (iii) after the maturity of the Loan, whether by reason of acceleration or otherwise, the unpaid principal balance of the Term Loan (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 on the Loan under the terms of the Term 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.

4.    Late Charge.  If any payment of principal or interest due under this Fourth Supplement or the Term Note is not paid within ten (10) days of the due date thereof, the Borrower shall pay, in addition to such amount, a late charge equal to five percent (5%) of the amount of such payment.

5.     Changes in Law Rendering Certain LIBOR Rate Loans Unlawful.  In the event that any change in any applicable law (including the adoption of any new applicable law) or any change in the interpretation of any applicable law by any judicial, governmental or other regulatory body 

charged with the interpretation, implementation or administration thereof, should make it (or in the good-faith judgment of Lender should raise a substantial question as to whether it is) unlawful for Lender to make, maintain or fund LIBOR Rate loans, then:  (a) Lender shall promptly notify each of the other parties hereto; and (b) the obligation of Lender to make LIBOR Rate loans of such type shall, upon the effectiveness of such event, be suspended for the duration of such unlawfulness.  During the period of any suspension, Lender shall make loans to Borrower that are deemed lawful and that as closely as possible reflect the terms of the MLA.

6.    Maximum Amount Limitation.  Anything in the MLA, this Fourth Supplement, or the other Loan Documents to the contrary notwithstanding, Borrower shall not be required to pay unearned interest on the Term Note or any of the Loan Obligations, or ever be required to pay interest on the Term Note or any of the Loan Obligations at a rate in excess of the Maximum Rate.  If the effective rate of interest which would otherwise be payable under the MLA, this Fourth Supplement, the Term Note, or any of the other Loan Documents would exceed the Maximum Rate, if any, then the rate of interest which would otherwise be contracted for, charged, or received under the MLA, this Fourth Supplement, the Term Note, or any of the other Loan Documents shall be reduced to the Maximum Rate.  If any unearned interest or discount or property that is deemed to constitute interest (including, without limitation, to the extent that any of the fees payable by Borrower for the Loan Obligations to Lender under the MLA, this Fourth Supplement, the Term Note, or any of the other Loan Documents are deemed to constitute interest) is contracted for, charged, or received in excess of the Maximum Rate, then such interest in excess of the Maximum Rate shall be deemed a mistake and canceled, shall not be collected or collectible, and if paid nonetheless, shall, at the option of the holder of the Term Note, be either refunded to Borrower or credited on the principal of the Term Note.  It is further agreed that, without limitation of the foregoing and to the extent permitted by applicable law, all calculations of the rate of interest or discount contracted for, charged or received by Lender under the Term Note, or under any of the Loan Documents, that are made for the purpose of determining whether such rate exceeds the Maximum Rate applicable to Lender, if any, shall be made, to the extent permitted by applicable laws (now or hereafter enacted), by amortizing, prorating and spreading during the period of the full term of the Advances evidenced by the Term Note, and any renewals thereof all interest at any time contracted for, charged or received by Lender in connection therewith.
    
7.    Security.  The Borrower’s obligations hereunder and, to the extent related thereto, the MLA, shall be secured as provided in the MLA and the other Loan Documents.
8.    Events of Default.  The occurrence and continuance of an Event of Default under the MLA or under any other Loan Document is an “Event of Default” under this Fourth Supplement and the Term Note.

9.    Remedies.  In addition to the remedies and relief set forth herein, upon the occurrence of an Event of Default or at any time thereafter, Lender may, at its option, exercise any or all of the rights and remedies set forth in the MLA, the Security Agreement, the Mortgage, and the other Loan Documents.  The Lender may also take any action or commence any proceeding at law or in equity which it deems advisable for the protection of its interests to collect and enforce repayment of the Term Loan. 

10.    Governing Law.  This Fourth Supplement shall be governed by, construed and enforced in accordance with the internal laws of the State of Minnesota without regard to its conflicts of laws principles.

11.     Execution of Counterparts.  This Fourth Supplement may be executed in any number of counterparts and on telecopy counterparts, each of which when so executed shall be deemed to be an original and all of which when taken together shall constitute but one and the same agreement.  

[SIGNATURE PAGE ON FOLLOWING PAGE]

SIGNATURE PAGE FOR
AMENDED AND RESTATED
FOURTH SUPPLEMENT
TO MASTER LOAN AGREEMENT
(TERM LOAN)
BY AND BETWEEN
HOMELAND ENERGY SOLUTIONS, LLC
AND
HOME FEDERAL SAVINGS BANK

DATED:  June 29, 2017

IN WITNESS WHEREOF, the parties have caused this Amended and Restated Fourth Supplement to be executed by their duly authorized officers as of the date shown above.
HOMELAND ENERGY SOLUTIONS,        HOME FEDERAL SAVINGS BANK, 
LLC, an Iowa limited liability company        a federally chartered stock savings bank
organized under the laws of the United
States

        
By:     /s/James Broghammer                 By:     /s/Eric Oftedahl        
          James Broghammer                     Eric Oftedahl
Title:  President/CEO                    Its:  Vice President

STATE OF IOWA            )
                            ) ss.
COUNTY OF  Chickasaw        )

On this 29th day of June, 2017, before me a Notary Public within and for said County, personally appeared James Broghammer, to me known, who being by me duly sworn, did say that he is the President of Homeland Energy Solutions, LLC, the limited liability company named in the foregoing instrument, and that said instrument was signed on behalf of said company by authority of its board and as the free act and deed of said company.

  /s/ Katherine J. Balk            
Notary Public

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