Document:

Exhibit 10.1

Exhibit 10.1

AGREEMENT FOR ELECTRIC SERVICE

THIS AGREEMENT is entered into and effective this 6th day of March, 2009, by and between
Hawkeye Tri-County Electric Cooperative d/b/a Hawkeye REC (“Seller”), 24049 State Hwy 9, Cresco,
Iowa 52136-0090, a cooperative corporation, organized and existing under the laws of the State of
Iowa, and Homeland Energy Solutions, LLC (“Customer”), a corporation organized and existing under
the laws of the State of Iowa, as operator of the Homeland Energy Ethanol Production Plant to be
located in Chickasaw County, Iowa.

WHEREAS, Seller is a cooperative electric corporation engaged in the business of providing
electric power and energy at retail to consumers located in its assigned service area; and

WHEREAS, Customer operates facilities associated with the production, transportation, and
storage of ethanol at its Homeland Energy Ethanol Plant (“Project”), located in Chickasaw County,
Iowa; and

WHEREAS, the Iowa Utilities Board (“IUB”) has previously established the electric service area
for Seller, which area includes within its boundaries Customer’s Project, and Seller is permitted
by law to supply electric power and energy to Customer at this location; and

WHEREAS, Seller and Customer desire to enter into an agreement for the sale by Seller and
purchase by Customer of electric power and energy for Customer’s operations, as hereinafter
provided:

NOW, THEREFORE, in consideration of the mutual promises contained herein, Seller and Customer
agree as follows:

1. Definitions. The following terms as used in this Agreement shall have the following
meanings:

(A) Effective Date. The date written above in the first paragraph of the Agreement.

(B) In Service Date. The Date Customer begins processing ethanol at the Homeland
Energy Ethanol Production Plant.

(C) Start-Up Period. The Start-up Period shall be the period between the Effective
Date and the In Service Date.

(D) Point of Delivery. Electric service shall be three-phase (3f) 60 Hz, at service
voltages mutually agreed upon by Customer and Seller and shall be delivered at the secondary
terminals of the service transformer(s) on the property of Customer. Seller shall
request its Wholesale Supplier to provide the transmission facilities necessary to permit Seller to
provide the electric service to Customer. To the extent Seller is required to make a contribution
in aid to the construction of necessary transmission facilities, Seller reserves the right to pass
those costs through to Customer as an advance as specified in Section 5.D, and detailed on the
attached Schedule.

*** Portions omitted pursuant to a request for confidential treatment and filed separately with the
SEC.

 

 

 

(E) Metering Point. Metering by the Seller will be at 7,200/12,470 volts in advance
of all service transformers and located in the substation constructed by the Cooperative.

(F) Uncontrollable Forces. Any cause beyond the control of the party affected,
including, but not limited to, failure of facilities, flood, earthquake, storm, fire, ice,
lightning, wildlife, epidemic, war, riot, civil disturbances, strikes or labor disturbances,
sabotage, or restraint by court order or public authority, which by exercise of due foresight such
party could not reasonably have been expected to avoid, and which, by exercise of due diligence, it
is unable to overcome.

(G) Contract Demand. Maximum power and energy which Seller is obligated to provide to
customer.

(H) Wholesale Supplier. Dairyland Power Cooperative (“Dairyland”), the wholesale
power supplier currently providing service to Seller.

2. Service —  Character of Use.

(A) Seller shall supply and sell to Customer, and Customer shall take and purchase from
Seller, during the term of and subject to the provisions of this Agreement, the total electric
power and energy required for Customer’s Project and shall not use the electric power and energy as
a supplement to any other supply, except in cases of emergency when Customer may be permitted to
utilize back-up generation that may be installed by Customer. The Contract Demand for service is
9,000 kilowatts (kW).

(B) After the effective date and during the term of this Agreement, if any change in any state
or federal law, rule or regulation, or change in the agency or judicial application or
interpretation of said law, rule or regulation, requires a change in the delivery or sale of
electric power and energy to Customer by Seller, then an amended Agreement shall be made and
entered into between the Seller and Customer within forty-five (45) days of the effective date of
such change to permit the Customer and Seller to incorporate such change and its impact into this
agreement.

3. Specification of Electric Energy — Delivery. The Seller’s Wholesale Supplier
controls the frequency of current provided by the Seller. All electric energy delivered hereunder
shall be in the form of three-phase alternating current at a frequency of 60 Hertz and a voltage of
12,470 kV delivered to the Point of Delivery. Except for periods of outage or infrequent and
unavoidable fluctuations, the frequency shall be maintained within one-tenth (1/10) of a cycle per
second.

 

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4. Facilities.

(A) The Seller will furnish, install and maintain the electrical facilities necessary to
properly and adequately deliver to the Customer all of the electric power and energy required under
the terms and conditions of this Agreement to the Point of Delivery. Customer will be responsible
for all facilities beyond the Point of Delivery. Customer and Seller will coordinate the planning
and design of their respective facilities to meet all safety and operational needs and conform to
all applicable Federal and State electric service quality and reliability rules and regulations.

(B) If utilization of electric energy by Customer should cause fluctuations or disturbances
with the flow of energy on the distribution or transmission lines of Seller or Dairyland which can
be specifically identified, and verified by Seller, as the cause of the deterioration of service to
other customers, including, telephone, television, or other communication facilities service,
Seller shall have the right to require the installation by Customer of suitable apparatus to
correct or limit such a fluctuation or disturbance at no cost to Seller. This corrective action
shall be taken within a reasonable period of time after notification in writing to Customer by
Seller. If such corrective action is not taken in a timely manner, Seller shall have the right to
cause reasonable corrective measures to be taken, and Customer herby agrees to pay all reasonable
and actual costs associated with such action.

(C) Any motors greater than 150 horsepower must be provided or equipped with soft start
controllers.

(D) Customer shall have responsibility and shall bear the expense to maintain all electric
facilities owned by Customer, and Seller and Wholesale Supplier shall have responsibility and shall
bear the expense to maintain all transmission, distribution, and other facilities owned or operated
by Seller and Wholesale Supplier, except as otherwise expressly provided herein.

(E) Each party shall indemnify and hold harmless the other party, and its partners, operator,
affiliates, agents, and their officers, directors, representatives, designees, and employees, from
and against any and all claims, causes of action, losses, suits, penalties, damages, judgments,
liabilities, costs, and expenses, including but not limited to court costs, costs of settlement,
litigation costs and reasonable attorney’s fees occurring on its respective side of the Point of
Delivery or caused by any negligent or willful act or omission by the indemnifying party in
performing their obligations hereunder; provided, however, that nothing herein contained shall be
construed as relieving or releasing either party from liability for injury or damage, wherever
occurring, resulting from its own negligence or the negligence of its officers, servants, agent or
employees, and in the event of concurrent negligence there shall be contribution in accordance with
the laws of Iowa; and provided further, that each of the parties hereto shall be solely responsible
for injury or damage, wherever occurring, due solely to any defect in equipment installed,
furnished or maintained by such party, except as otherwise provided herein.

 

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The electric power and energy supplied under this Agreement is supplied upon the express condition
that after it passes the Point of Delivery it becomes the property of Customer and neither Seller
nor Dairyland shall be liable for loss or damage to any person or property whatsoever, resulting
directly or indirectly from the use, misuse, or presence of said electric power and energy on the
Customer’s premises or elsewhere, after it passes the Point of Delivery, except where such loss or
damage shall be shown to have been occasioned by the negligence of Seller, Dairyland, their agents
or employees.

Except in the case of gross negligence or intentional misconduct, no party shall be liable for any
indirect, consequential, special, exemplary, or punitive damages of any nature arising out of or
related to actions taken or omissions of such party in connection with this Agreement.

(F) Customer shall provide Seller a suitable 2.59 acre site for the purpose of constructing
and maintaining transmission facilities and a distribution substation at no cost to Seller or
Dairyland. The site provided is to be graded and compacted by Customer to the elevation agreed upon
by the Parties. The real estate conveyed shall be free of any encumbrances or title defects and
shall be conveyed by Warranty Deed. Customer land provided for this purpose shall be included as a
credit toward the contribution in aid of construction at a valuation of $*** per acre, for a total
contribution of $***.

A suitable road to access the substation facilities shall be provided and maintained by
Customer for use by Customer, Seller, Dairyland Power Cooperative, and their agents.

5. Monthly Rate.

(A) Customer shall pay Seller for the electric power and energy provided hereunder those
amounts set forth in the attached Rate Schedule, which schedule may be changed by the Cooperative’s
Board of Directors, subject to the limitations set forth below. The attached Rate Schedule is
incorporated herein by reference. However, the Minimum Charge as specified in said Rate Schedule
shall be waived by Seller during the Start-up Period.

(B) Seller will provide Customer advance written notice of any change in Seller’s tariff rate
at least 30 days prior to the effective date of such change. Customer understands that a change in
character of use by Customer may impact Customer’s eligibility for the rate set forth in paragraph
5(A) above.

(C) Any legal direct tax applicable to service rendered under this Agreement shall be charged
to Customer by Seller, in the form of a direct monthly pass-through without modification of the
amount. If any such direct cost is subsequently modified or removed, Seller shall make an
identical modification or removal of the charge to Customer under this Agreement, effective as of
the same date the modification or removal of the tax becomes effective. Customer reserves the
right to contest or object to any such direct tax or charge applicable or potentially applicable to
service under this Agreement with the appropriate taxing authority.

*** Portions omitted pursuant to a request for confidential treatment and filed separately with the
SEC.

 

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(D) Facilities Charge. In order to provide electric service to the Customer, the
Seller and Dairyland must construct certain facilities. Seller and Dairyland have agreed to
construct a substation and the transmission facilities necessary to interconnect the new substation
with Dairyland’s transmission network without an advance in aid to construction by Customer. In
addition, temporary and permanent line extensions from the substation to the Project shall be
required for use in serving the customer, which have been constructed at a total cost of $***.
Customer has made a non-refundable advance in aid to construct said facilities equal to $***. The
entire cost of the temporary line extension and permanent line extension required to extend service
from the substation to the Project and shall be paid by Customer, with the balance of $*** (less
the credit of $*** referenced in section 4.F above) being collected through the Distribution System
Charge contained on the attached rate Schedule.

In the event it is determined, subsequent to the execution of this Agreement, that additional
facilities or modifications to planned facilities are required, the parties agree to negotiate in
good faith with respect to the design, modification, and construction of the additional or modified
facilities and the payment to be made by Customer to Seller for the additional or modified
facilities.

6. Capital Credits. The Seller’s Board of Directors may classify its patrons and
business and allocate the excess, if any, of its receipts over expenses in any year as patronage
capital credits to the various patronage classifications. Allocations of the patronage capital
credits may consider a variety of relevant factors such as the cost of rendering service, the
margins produced by such service, the terms of the Agreement with patrons, and the obligations of
the parties involved. The Seller has created or may create a separate classification of business
applicable to its patrons receiving service under the rate schedule applicable to the Customer, and
patronage capital credits may accrue at a different rate for that classification of members. The
right of Customer to receive patronage capital credits shall survive the expiration or other
termination of this Agreement.

7. Power Factor. Customer shall make reasonable efforts to operate its facilities at
close to unity power factor. Except during compressor motor starting, power factor may be less
than ninety-eight percent (98%), but the Customer agrees to the reactive billing demand for the
month will be the maximum amount of lagging kVAR established by the Customer for any period of 60
consecutives minutes during the month for which the bill is rendered that is in excess of the kVAR
equivalent to a 98% lagging power factor.

8. Metering.

(A) Metering shall be by digital primary meters for recording and monitoring electrical usage
and demand. The meters shall have the capability to be monitored by telephone line or other
electrical signal. The meters shall be periodically inspected and tested for the purpose of
establishing that metering equipment is connected properly, meters are adjusted to register power
and energy accurately, and proper metering records are prepared and maintained. Seller shall
notify Customer in advance of the time of any meter testing so that a representative of the
Customer may be present.

*** Portions omitted pursuant to a request for confidential treatment and filed separately with the
SEC.

 

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(B) Meters may be sealed at the sole discretion of Wholesale Supplier and, if sealed, the
seals shall be broken only upon occasions when the meters are to be inspected, tested, or adjusted,
and authorized representatives of Customer and Seller or Wholesale Supplier shall be afforded
reasonable opportunity to be present upon such occasions. Seller or Wholesale Supplier shall
inspect and test, or cause to be inspected and tested, metering equipment at least yearly, and at
any other reasonable time upon request by Customer. Any meter found to be defective or inaccurate
shall be repaired and readjusted or replaced by Seller at no cost to the Customer. Should any
meter fail to register the power and energy delivered during any period, such deliveries shall, for
billing purposes and payment purposes, be estimated for such period using the best information
available. If the customer requests a meter test, the Customer shall pay the cost of such test if
the meter has been previously tested within the past 12 months and the meter was found to be within
accuracy standards set.

(C) The meter readings shall be presumed to be accurate as to the quantity of power and energy
taken by Customer unless, upon test, the meter is found to be in error by more than the limit set
forth in the applicable rule of the IUB.

9. Billing and Payment.

(A) The customer shall pay the Seller for electric power and energy furnished hereunder at the
rates specified above.

(B) Bills for service hereunder, shall be by electronic funds transfer to a bank designated by
Seller. Such payment shall be within ten (10) days after the issuance of the bill each month for
electric power and energy furnished for the monthly billing period. If the Customer shall fail to
make any such payment by the due date, the Seller may discontinue service to the Customer upon
giving five (5) days’ written notice to the Customer of its intention to do so; provided however,
Customer may cure any intent to discontinue service for nonpayment by causing Seller to receive all
amounts duly owing and outstanding before the end of the five (5) day notice period. Seller may
also disconnect service if Customer fails to comply with standards established by the utility for
interconnection, safety, and operating reliability; for any breach of contract that jeopardizes the
health and safety of persons or the integrity of the utility electric system; for reasonable
periods for the purpose of maintenance, testing, replacement, and repair of the utility system;
Customer’s failure to comply with the Seller’s electric service tariff, Articles of Incorporation,
or Bylaws; or for any other cause as set forth in the rules of the IUB. In this event, Customer
shall have 30 day notification period to remedy its operation and meet standards as requested. The
prompt payment provisions provided herein and the cash deposit set forth below recognize the
Seller’s willingness to finance and carry the risk related to the substation investment and a
portion of the distribution delivery system.

(C) An amount equal to $*** shall be paid by Customer to Seller in advance of Seller providing
electric service as a customer deposit. Such deposit shall be in an account, upon which Seller
shall be entitled to draw upon such account at anytime its wholesale electric bill for service to
Customer becomes due prior to receiving payment from Customer pursuant to
Paragraph 9(B) or in the event of nonpayment by Customer; if Seller draws on such account, it shall
replace funds in such account within one (1) day of receiving payment from Customer.

*** Portions omitted pursuant to a request for confidential treatment and filed separately with the
SEC.

 

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(D) The Seller may from time to time change the required deposit amount based upon the
Customer’s historical actual or projected power and energy consumption and the Seller’s historical
or projected costs for Customer’s power and energy consumption. Customer acknowledges that the
deposit required hereunder is intended to take into account the Seller’s willingness to finance a
portion of the cost of the facilities required to provide service to Customer as set forth in
Section 5(D) above.

10. Additional Terms. The electric service contracted for herein is to be provided
and taken in accordance with the provisions of this Agreement for Electric Service and all
applicable provisions of the laws of the State of Iowa. Customer shall be a member of Seller and
shall be bound by the provisions of the Articles of Incorporation and the Bylaws of the Seller and
by such rules and regulations as may from time to time be adopted by the Seller. Each party agrees
that it will at all times maintain its lines and equipment and other facilities required under this
Agreement in a safe operating condition in conformity with generally accepted standards for
electric utilities in the State of Iowa.

11. Resale. Customer understands and agrees that the electric service provided under
this Agreement is for the operation of the Customer’s Homeland Energy Ethanol Plant and related
purposes. Accordingly, such power and energy shall not to be resold, used, delivered, shared, or
distributed to any other person, firm, corporation, association, or cooperative for use on the site
for other purposes or outside the site for any purpose.

12. Force Majeure and Liability. Neither Seller nor Customer shall be considered to
be in default in performance of any obligation hereunder, other than its obligation to make
payments for energy and services received, if failure of performance shall be due to Uncontrollable
Forces. No party shall, however, be relieved of liability for failure of performance, if such
failure is due to causes arising out of its own negligence or failure to remove or remedy with
reasonable dispatch. Nothing contained herein, however, shall be construed to require any party to
prevent or settle a strike or labor disturbance against its will. Neither party shall be liable
for consequential damages arising out of the failure to provide or to take electric power or energy
under this Agreement.

13. Firm Service. Subject to the provisions of this Agreement, the electric service,
rates and charges provided herein are for firm service, subject to emergency curtailments made on
an equitable basis as to other firm customers of Seller. The parties will communicate and
coordinate operations to the extent practical given the conditions then existing. Seller shall
attempt to provide Customer with advance notice of any planned outages when practical and to
restore service promptly in light of the circumstances then existing. Seller anticipates, but does
not guaranty, Firm Service will be available to Customer no later than March 9, 2009.

 

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14. Notices. Any notice required to be given to either party under the terms and
provisions of this Agreement may be given by mailing such notice to Customer or Seller by United
States mail. The notice shall bear the date of its mailing and shall become effective on
and after receipt. Each party shall designate from time to time persons entitled to receive
notice. As of the execution of this Agreement, the individuals and addresses to be used for
notices are as follows:

If to Customer:

Homeland Energy Solutions, L.L.C.

Attn: Walt Wendland, CEO

2779 Iowa Highway 24

Lawler, Iowa 54124

If to Seller:

Hawkeye Tri-County Electric Cooperative

Attn: CEO/General Manager

24049 State Highway 9

P.O. Box 90

Cresco, Iowa 52136-0090

15. Waiver. No waiver, expressed or implied, to any breach of any one or more of the
covenants or agreements hereof shall be deemed to be a waiver of any subsequent breach.

16. Right of Access. Subject to safety and other reasonable admission policies, duly
authorized representatives of Seller and its Wholesale Supplier are authorized and shall be
permitted to enter the Customer’s premises at all reasonable times in order to carry out the
provisions of this Agreement.

17. Term of Agreement. This Agreement shall become effective on the Effective Date,
and except as otherwise provided herein shall remain in effect for ten (10) years from the In
Service Date and shall terminate on the tenth (10th) anniversary of the In Service Date.

18. Continuation Beyond Term. Customer, at its option, may continue to receive the
service described herein following expiration of the above-described term, which service will be
provided at the rates provided herein, subject to change by consent or by the Board of Directors of
Seller, provided Customer shall be entitled to notice of any such change in the event service is
continued beyond the initial term, then this Agreement shall be for a minimum term of two (2)
years. Either party shall then have the right to terminate this Agreement upon giving six (6)
months’ written notice of its intention to terminate.

19. Succession. This Agreement shall be binding upon and inure to the benefit of the
successors, legal representatives and assigns of the respective parties hereto. Customer shall not
assign all or any portion of its rights or obligations of this Agreement without first obtaining
Seller’s written consent to assignment, which consent shall not be unreasonably withheld. In the
event the Customer assigns all or any part of its rights under this Agreement, Customer shall
remain liable for the performance for all Customer’s obligations hereunder, notwithstanding the
assignment.

 

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20. Law Governing. This Agreement shall be construed and governed in accordance with
the laws of the State of Iowa.

21. Amendment. This Agreement may be amended from time to time through the execution
by the parties of separate, written amendments.

22. Cancellation Clause. In the event the Customer ceases operation during the term
of this Agreement and as a result desires to cancel the Agreement for Electric Service, the
Customer shall be liable for a lump sum payment to Seller of an amount determined as follows:

A = B
+ C + D -  E

Where,

A = Cancellation Charge

B = Any applicable charges incurred by Seller from its Wholesale Supplier associated with
cancellation of service.

C = Any outstanding charges for electric service, and any amounts payable in future periods by
reason of provisions in the rate applicable to Seller, if any.

D = The monthly Facilities Charge payment multiplied times the number of months remaining until
expiration of the Term as set forth in Section 17 above.

E = Salvage value net of the Cost of removal of facilities directly associated with providing
service to the Customer. The Seller shall make the determination concerning salvage value and
shall provide documentation to Customer supporting the same.

23. Load Forecast. At the Seller’s request, Customer shall provide Seller projections of
monthly and/or annual capacity and energy requirements for the subsequent calendar year and
succeeding years. Customer shall also notify Seller whenever a major change in load forecast
occurs. Seller shall not be obligated to supply more than the Contract Demand in any 30-minute
period.

24. Dispute
Resolution. The Parties agree to attempt to resolve any controversy or claim
arising out of or relating to this Agreement, or breach thereof, by negotiations between the
Parties. If negotiations fail to resolve the conflict within thirty (30) days, the Parties agree
to participate in voluntary mediation.

 

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If mediation does not resolve any controversy or claim within thirty (30) days, any Party may
seek resolution of the controversy or claim in accordance with the rules of the American
Arbitration Association, subject to the limitations of this section. The arbitrator (or, if a
three-arbitrator panel is requested by any Party, each of the arbitrators) shall be a disinterested
person
of recognized competence in the field in which the issues sought to be resolved have arisen,
with at least ten (10) years of experience in that field. The arbitrator(s) shall have
jurisdiction and authority only to interpret and determine compliance with the provisions of this
Agreement insofar as shall be necessary in the determination of the issues properly submitted to
them. The arbitrator(s) shall not have jurisdiction or authority to amend, alter, cancel, or
rescind any provisions of this Agreement. This Agreement to arbitrate and any other agreement or
consent to arbitrate entered into in accordance with this section shall be specifically enforceable
under the prevailing law of any court having jurisdiction. Notice of the demand for arbitration
will be filed in writing with the other Party to the Agreement.

25. Demand Increase. If there is a need for an increase in the Contract Demand, Seller and
Dairyland shall determine whether any additions or modifications to existing facilities will be
required to accommodate the increased demand. Customer shall provide advance payment of the
estimated cost of any required studies. If Customer is the sole beneficiary of the increased
demand capacity they will assume the entire cost of the studies, however if other entities will
benefit from these studies Customer will only pay their equitable share. If Seller and Dairyland
determine that additions or modifications are required, Seller and Dairyland shall estimate the
installed cost of such additional or modified facilities (the “Additional Facilities”) and the
estimated time required to install Additional Facilities.

The need for Additional Facilities and the estimated installed cost and installation time
shall be communicated to Customer, in writing, within forty-five (45) days of the date of
Customer’s notice of the need for an increased demand, or as soon as practicable thereafter if
there is a need to consult with third parties.

After reviewing the estimated installed cost and installation time, Customer may withdraw its
notice of intent to increase its demand or Customer may elect to increase its demand. If Customer
elects to increase its maximum demand, Customer shall reimburse Seller and Dairyland for its share
of the quoted cost (or a portion thereof) of the Additional Facilities on a progress payment basis
with payments made by Customer within thirty (30) days of billing.

Customer shall reimburse Seller and Dairyland for the full cost of the Additional Facilities
if Customer is the only entity benefited by the Additional Facilities. Customer shall reimburse
Seller and Dairyland for an equitable share of the cost of the Additional Facilities if other
entities are benefited by the Additional Facilities. Additional Facilities may require a
modification of the rate as negotiated by the parties.

 

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year
first written above.

	 	 	 	 	 	 	 	 	 
	ATTEST:	 	 	 	HAWKEYE TRI-COUNTY ELECTRIC COOPERATIVE	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Dean Fisher	 	 
	 

	 	 	 	 	 	 	 	 
	Secretary

	 	 	 	 	 	President	 	 
	 
	 	 	 	 	 	 	 	 
	ATTEST:	 	 	 	HOMELAND ENERGY SOLUTIONS, L.L.C.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Walter Wendland	 	 
	 

	 	 	 	 	 	 

	 	 

 

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RATE SCHEDULE

Homeland Energy Ethanol Plant

	a.	 	Base Prices. The base prices of delivered electricity for the Customer
shall be as follows:

	 	 	 
	Consumer Charge:

	 	$***/Month
	Substation Charge:

	 	$***/Month/In years 1 – 7
	O&M Charge:

	 	$***/Month
	Distribution System Charge:

	 	$***/Month/In years 1 – 5
	Distribution Delivery Charge:

	 	$***/kWh/Month
	Purchased Power Charge:

	 	Equal to Seller’s average Wholesale Power Costs*

	 	 	 
	*	 	The Seller’s Wholesale Power Costs currently include the following components:

	 	 	 
	Seasonal Peak Period Demand Charges
	 	 
	Summer Season

	 	$*** per KW per year
	Winter Season

	 	$*** per KW per year
	Transmission Demand Charge

	 	$*** per KW per month
	Reactive Demand Charge

	 	$*** per kVAR of maximum kVAR per month
	 
	 	 
	Energy Charges
	 	 
	On-Peak Energy

	 	$*** per kWh per month
	Off-Peak Energy

	 	$*** per kWh per month
	Economic Development Credit

	 	$*** per kWh per month; in years 1
– 3;
maintaining 65% load factor

	 	 	 
	*	 	The above kWh rates shall be increased or decreased the same amount as any
increase or decrease in the Cooperative’s wholesale rates due to a wholesale
power cost adjustment.

The Seller’s Wholesale Power Costs for purposes of calculating the Purchased Power
Charge above shall be based upon Dairyland Power Cooperative’s Rate Schedule A-1,
Firm Power, as it may be amended from time to time, and shall include the Economic
Development Credit to the extent service to Customer qualifies for said Credit.

Notwithstanding the foregoing, Customer shall pay a minimum bill each month equal to
the Distribution Delivery Charge rate and the wholesale rate times 3,500,000 kWh,
plus the Customer Charge, Substation Charge, O&M Charge, and Distribution Delivery
charge. [Based upon the foregoing rate schedule, the minimum monthly bill would be
$***].

The Facility Charge is based upon a substation capable of serving a 10 MW plant. A
larger substation will require a higher monthly charge and may impact the minimum
bill.

*** Portions omitted pursuant to a request for confidential treatment and filed separately with the
SEC.

 

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Customer acknowledges that in order to increase reliability of service, Seller has
agreed to maintain certain standby transformers and other facilities on hand, which
facilities would not be required to serve any of Seller’s other Customers. The O&M
Charge of $*** per month includes and amount to compensate Seller for maintaining
such facilities on hand.

	b.	 	Future Taxes:

All additional future energy, environmental, or other taxes, which are not currently
in place but are levied in the future upon delivery and/or sale of electric power
and energy, may be added to the charges specified under this Rate. Said future
taxes are in addition to any other necessary rate increases.

	c.	 	Rate Increases/Modifications:

The above Rate has been based upon the Seller’s current rate for power purchases
from its power supplier and other factors impacting Seller’s rates. Seller does not
provide any rate guarantees, and Seller reserves the right to change and/or modify
the Rate charged hereunder at the discretion of the Seller’s Board of Directors.
Seller agrees that any rate changes will be made on a non-discriminatory manner.

*** Portions omitted pursuant to a request for confidential treatment and filed separately with the
SEC.

 

13Exhibit 10.1

EXHIBIT 10.1

PGRT ESH, INC.

77 West Wacker Drive

Suite 3900

Chicago, Illinois 60601

January 30, 2009

Citicorp USA, Inc.

101 John F. Kennedy Parkway

Fourth Floor

Short Hills, New Jersey 07078

Re: Forbearance Extenstion

Ladies and Gentlemen:

Reference is made to the Amended and Restated Loan Agreement dated as of June 6, 2008 among
PGRT ESH, Inc. (the “Borrower”), Lightstone Holdings LLC, David Lichtenstein (together with
Lightstone Holdings LLC and the Borrower, the “Loan Parties”), and Citicorp USA, Inc. (the
“Lender”), as amended by that certain First Amendment to Loan Agreement dated as of October 31,
2008 by and among the Loan Parties and the Lender (as amended by that certain letter agreement
dated December 31, 2008 among the Loan Parties and the Lender, collectively, “First Amendment”) and
that certain Second Amendment to Loan Agreement dated as of December 31, 2008.

The Loan Parties have requested a further extension of the Forbearance Period (as defined in
the First Amendment) from January 30, 2009 until March 2, 2009 to continue to consider a long term
restructuring plan with the Lender. The Lender hereby agrees with the Loan Parties that the First
Amendment is amended by deleting “January 30, 2009” in Section 3(a) thereof and substituting “March
2, 2009” therefor.

 

 

 

Citicorp
USA, Inc.

January 30, 2009

Page 2

Except as amended hereby, the First Amendment shall remain in full force and effect.

	 	 	 	 	 
	 	Very truly yours,

PGRT ESH, INC.

 	 
	 	By:  	/s/ David Lichtenstein
 	 
	 	 	David Lichtenstein 	 
	 	 	Chairman 	 

AGREED TO AND ACCEPTED AS

OF THE DATE FIRST SET FORTH ABOVE:

Lender

	 	 	 	 	 
	CITICORP USA, INC.
	 
	 	 	 	 
	By:

	 	/s/ Diana Yusun	 	 
	 

	 	 	 	 
	 

	 	Diana Yusun	 	 
	 

	 	Director	 	 
	 
	 	 	 	 
	Guarantors
	 
	 	 	 	 
	/s/ David Lichtenstein
	 	 	 
	David Lichtenstein
	 
	 	 	 	 
	LIGHTSTONE HOLDINGS LLC
	 
	 	 	 	 
	By:

	 	/s/ David Lichtenstein	 	 
	 

	 	 	 	 
	 

	 	David Lichtenstein	 	 
	 

	 	Managing Member	 	 

Signature page to Second Extension

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