On September 30, 2019, Heron Lake BioEnergy, LLC (the “Company”) finalized an Industrial Water Supply and Distribution Agreement (the “New Agreement”) with the City of Heron Lake, Minnesota (the “City”). The Company and the City previously entered into an Industrial Water Supply and Distribution Agreement, dated October 27, 2003 (the “Original Agreement”), under which the City supplied untreated industrial water to the Company. The Original Agreement expired on February 1, 2019, and, prior to such expiration, the Company and the City agreed to negotiate in good faith to replace the Original Agreement and extend the Original Agreement until a new agreement could be finalized. The New Agreement, which is effective as of February 1, 2019, has a term of ten (10) years, and requires the City to provide certain amounts of industrial water to the Company from the City’s well facilities. In return, the Company will pay both a fixed charge and flow charges to the City. In addition, the Company is required to pay for certain maintenance costs related to the wellfield, well facilities and related distribution infrastructure, to the extent such costs exceed a certain threshold.