ETHANOL FUEL MARKETING AGREEMENT

     THIS AGREEMENT, entered into this ___day of June, 2005, by and between RENEWABLE PRODUCTS MARKETING GROUP, LLC, a Minnesota limited liability company, hereinafter referred to as RENEWABLE PRODUCTS; and LINCOLNWAY ENERGY, LLC, a Iowa limited liability company, hereinafter referred to as LINCOLNWAY ENERGY.

     WITNESSETH:

     WHEREAS, RENEWABLE PRODUCTS is a Minnesota limited liability company formed for the purpose of marketing ethanol for its members and others, and,

     WHEREAS, LINCOLNWAY ENERGY is an Iowa limited liability company formed for the purpose of constructing a plant in Nevada, Iowa for the production of fuel grade ethanol, and,

     WHEREAS, the parties believe that it would be in their mutual best interests for RENEWABLE PRODUCTS to market, sell and distribute all of the ethanol produced by LINCOLNWAY ENERGY at its plant in Nevada, Iowa; and

     WHEREAS, the parties desire to enter into this Agreement, for purposes of setting out the terms and conditions of the business arrangement;

     NOW, THEREFORE, in consideration of the mutual covenants and promises herein contained, the parties hereto agree as follows:

     1. Exclusive Marketing Representative. That if LINCOLNWAY ENERGY constructs a facility for the production of fuel grade ethanol, RENEWABLE PRODUCTS shall, subject to the terms and conditions of this Agreement, be the sole marketing representative for the entire production of said facility. Notwithstanding the foregoing, any ethanol production resulting from future expansion at LINCOLNWAY ENERGYs ethanol facility in Nevada, Iowa or resulting from LINCOLNWAY ENERGYs direct or indirect ownership or operation of other ethanol facilities shall not be subject to this Agreement.

     2. Plant Construction/Ethanol Specifications. That LINCOLNWAY ENERGY promises and agrees to proceed, with due diligence, toward the planning, financing and construction of a facility for the production of fuel grade ethanol with a capacity of approximately 50 million gallons per year, and conforming to the specifications described in A.S.T.M. 4806 and such other specifications that may be, from time-to-time, promulgated by the industry for E-Grade denatured fuel ethanol. LINCOLNWAY ENERGY contemplates that said facility will be in production by July, 2006, and will make every good faith effort to begin production by that time. All of the ethanol marketed by RENEWABLE PRODUCTS and sold to its customers will be of merchantable quality and will be fit for its intended purpose. All such fuel grade ethanol will conform to the specifications described in A.S.T.M. 4806 and such other

specifications that may be, from time to time, promulgated by the industry for E-Grade denatured fuel ethanol.

     3. Rail and Truck Loading Facilities. That the facility to be constructed and operated by LINCOLNWAY ENERGY, as aforesaid, shall include reasonable and convenient railcar and tank truck access at the facility of a size and design appropriate to handle production of approximately 50 million gallons of ethanol per year. All such railcar and tank truck loading facilities shall meet all industry and governmental safety standards and shall be capable of delivering a minimum design capacity of 800 gallons of product per minute to railcars and/or tank trucks. LINCOLNWAY ENERGY will be solely responsible for all demurrage charges for railcars incurred on its site and for demurrage charges on railcars unable to be delivered at LINCOLNWAY ENERGYs ethanol facility due to insufficient railcar siding capacity. LINCOLNWAY ENERGY shall provide personnel reasonably needed to load trucks or rail cars at its facility in a timely manner. Demurrage charged to trucks or railcars resulting from operations beyond the control of LINCOLNWAY ENERGY and incurred off-site will not be charged directly to LINCOLNWAY ENERGY.

     4. Storage Capacity. That the facility to be constructed and operated by LINCOLNWAY ENERGY as aforesaid shall have sufficient storage capacity for not less than 10 days ethanol production.

     5. Best Efforts to Market. That since RENEWABLE PRODUCTS shall have the exclusive right to market all the fuel grade ethanol produced by LINCOLNWAY ENERGY during the term of this agreement as described in Section 1 herein, RENEWABLE PRODUCTS promises and agrees to use its best efforts and good faith to market all such fuel grade ethanol; provided, however, that RENEWABLE PRODUCTS obligation hereunder shall be excused in case of fire, flood, other natural calamity, labor dispute or any adverse governmental statute, regulations or decree (including any court order or decree), directly affecting RENEWABLE PRODUCTS ability to market products.