HERON LAKE BIOENERGY, LLC : Change in Directors or Principal Officers, Financial Statements and Exhibits (form 8-K)
February 22, 2021 at 06:02 am
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Item 5.02. DEPARTURE OF DIRECTORS OR PRINCIPAL OFFICERS; ELECTION OF DIRECTORS;
APPOINTMENT OF PRINCIPAL OFFICERS; COMPENSATORY ARRANGEMENTS OF CERTAIN OFFICERS
Heron Lake BioEnergy, LLC ("Heron Lake") is party to a 2013 Management Services
Agreement (the "Management Agreement") with Granite Falls Energy, LLC ("GFE"),
pursuant to which GFE provides Heron Lake with the services of a Chief Executive
Officer and other managers. Steve Christensen serves as CEO and General Manager
of Heron Lake and GFE pursuant to a 2014 employment agreement. Because
Christensen intends to retire at or before the end of 2021, GFE executed a
separation agreement (the "Separation Agreement") with Christensen on or about
February 17, 2021. The Separation Agreement provides that Christensen's services
to GFE will terminate at the earlier of December 31, 2021, or the hiring of a
new General Manager and the completion of a transition period. Christensen's
services to Heron Lake will terminate at the same time his services to GFE
terminate, pursuant to the terms of the Management Agreement. Christensen will
be paid in full pursuant to the terms of his employment agreement through
December 31, 2021, even if his services terminate earlier due to the hiring of
his replacement. In any event, Christensen's services to Heron Lake and GFE is
expected to terminate no later than December 31, 2021. These descriptions of the
Separation Agreement and the Management Agreement are qualified in their
entirety by reference to the actual agreements, copies of which are attached
hereto as exhibits and incorporated herein by reference.
Heron Lake BioEnergy, LLC owns and operates an ethanol plant near Heron Lake, Minnesota with a permitted capacity of approximately 72.3 million gallons per year of undenatured ethanol on a twelve-month rolling sum basis. In addition, Heron Lake BioEnergy, LLC produces and sells distillersâ grains with solubles and corn oil as co-products of ethanol production. The Companyâs segments include Ethanol Production and Natural Gas Pipeline. Heron Lake BioEnergy, LLCâs wholly owned subsidiary, HLBE Pipeline Company, LLC (HLBE Pipeline Company), is the sole owner of Agrinatural Gas, LLC (Agrinatural). Agrinatural, is a natural gas pipeline company that owns and operates the natural gas pipeline that provides natural gas to the Companyâs ethanol production facility and other customers through a connection with the natural gas pipeline facilities of Northern Border Pipeline Company in Cottonwood County, Minnesota.