On July 31, 2013, Heron Lake BioEnergy, LLC entered into a subscription agreement (the Viking Subscription Agreement) with Project Viking, L.L.C. relating to Project Viking's purchase of 8,075,000 Class A Units and 15,000,000 Class B Units of the Heron Lake BioEnergy for $0.30 per Unit for an aggregate purchase price of $6,922,500. Effective July 31, 2013, immediately following the closing of the Viking Subscription Agreement, GFE acquired 100% of the membership interests of Project Viking (including all governance rights and financial rights). In connection with the Viking Subscription Agreement, Heron Lake BioEnergy entered into a Subscription Supplement Agreement with Project Viking and GFE.

Pursuant to the Subscription Supplement Agreement, Project Viking exercised its right under the Member Control Agreement to appoint five governors to the Board On July 31, 2013, Heron Lake BioEnergy also entered into a Management Services Agreement with GFE. Under the Management Services Agreement, GFE agreed to supply its own personnel to act as part-time officers and managers of Heron Lake BioEnergy for the positions of Chief Executive Officer, Chief Financial Officer, and Commodity Risk Manager. Each person providing management services is subject to oversight by Heron Lake BioEnergy's Board of Governors.

However, the Chief Executive Officer is solely responsible for hiring and firing persons providing management services under the Management Services Agreement. The initial term of the Management Services Agreement is three years. At the expiration of the initial term, the Management Services Agreement will automatically renew for successive one-year terms unless and until the company or GFE gives the other party 90-days written notice of termination prior to expiration of the initial term or the start of a renewal term.

The Management Services Agreement may also be terminated by either party for cause under certain circumstances. Under Section 5.3(a)(iv) of the Member Control Agreement, Project Viking became entitled to appoint five governors to the Board as a result of the Viking Subscription Agreement. Pursuant to the Subscription Supplement Agreement, Project Viking removed two governors, Kenton Johnson and Steve Core, and appointed the following five governors effective as of the close of business on July 31, 2013: Paul Enstad, Rodney Wilkison, Dean Buesing, Marten Goulet, and Shannon Johnson.

Project Viking also appointed Leslie Bergquist and David Thompson to serve as alternates to the five Project Viking appointed governors. All five of the governors appointed by GFE to the Board and the two alternates appointed by GFE are current governors of GFE. Paul Enstad is the Chairman of the GFE Board of Governors.

Mr. Enstad has served on the board of governors of GFE since its inception. Rod Wilkison is the Vice Chairman of the GFE Board of Governors. Dean Buesing is the Secretary of the GFE Board of Governors and has served on the Board since 2009.

Marten Goulet has served on the board of governors of GFE since 2012. Shannon Johnson has served on the board of governors of GFE since its inception. Leslie Bergquist has served on the board of governors of GFE since 2013.

David Thompson was designated in November 2009 by GFE's at-large governors to serve as GFE's at-large alternate governor to act in the absence of an at-large governor. In connection with the Management Agreement, on August 1, 2013, the Board appointed Steve Christensen as Heron Lake BioEnergy's Chief Executive Officer and Stacie Schuler as Heron Lake BioEnergy's Chief Financial Officer. Mr. Christensen has served as the Chief Executive Officer and General Manager of GFE since April 2012.

Ms. Schuler has served as the Chief Financial Officer and Controller of GFE since July 2005.