Exhibit 10.2
AGREEMENT
BETWEEN
HUSKER AG PROCESSING, LLC
AND
THE NEBRASKA DEPARTMENT OF AGRICULTURE
The Nebraska Department of Agriculture, hereinafter referred to as the
"Department" is authorized by the Agricultural Opportunities and Value-Added
Partnerships Act, Neb. Rev. Stat. ss.ss.2-5401 to 2-5412, hereinafter referred
to as the "Act", to administer a competitive grant process to provide grants
under the Act. The Department has selected Husker Ag Processing, LLC,
hereinafter referred to as the "Recipient", to receive an award of $75,000 under
the provisions of the Act to carry out the project entitled "20 Gallon per year
dry-milling Ethanol Plant", hereinafter referred to as the "Project".
1. The Recipient agrees to:
a. Comply with all requirements of the Act, attached in Exhibit A
and incorporated by reference and made a part of this Agreement.
b. Comply with all requirements of the regulations adopted pursuant
to the Act, attached in Exhibit B and incorporated by
reference and made a part of this Agreement.
c. Use grant funds exclusively for carrying out the activities
listed in the Project as described in the application
submitted to the Department on December 29, 2000 attached in
Exhibit C and incorporated by reference and made a part of
this Agreement which comply with the Act.
d. Not violate any laws or regulations in the course of completing
the Project.
e. Submit a final report within 45 days of the completion of the
Project but not later than 12 months following notification of
the funding award. The Recipient's obligation shall survive
the expiration or termination of this Agreement.
f. Provide the Department with any special reports requested by the
Department during the Project.
g. Retain and make available to the Department all records related
to the Project for a period of five years. The Recipient's
obligation shall survive the expiration or termination of this
Agreement.
h. Allow the Department access to make onsite inspection of any
records, facilities or other property related to the Project.
i. Indemnify and hold harmless the Department from any and all
claims and liability, including costs and legal fees, that may
arise out of or on account of any activity undertaken by the
Recipient including but not limited to all liability under any
contract the Recipient has entered into, or intends to enter
into related to the Project. The Recipient's obligation shall
survive the expiration or termination of this Agreement.
j. The Recipient shall procure a policy or policies of insurance
from an insurance company licensed to write such insurance
which policy or policies of insurance shall guarantee payment
of compensation to injured workers according to the Nebraska
Workers Compensation Act.
k. Not discriminate against recipients of services on the basis of
race, color, religion, national origin, sex, disability,
or age.
l. Not discriminate against any employee or applicant for
employment on the basis of race, color, religion, national
origin, sex, or disability.
m. Not to engage in the unlawful manufacture, distribution,
dispensing, possession, or use of a controlled substance in
carrying out the Project.
2. The Department agrees to:
a. Provide funding in the amount of $75,000 to the Recipient for
the Project. Payment shall be made available to the Recipient
15 days after this Agreement is signed by both parties.
Payment will be made to Husker Ag Processing, LLC, Federal Tax
Identification Number (FTIN) #47-0836953.
3. The parties mutually agree:
a. The duration of the Agreement shall be from the date this
Agreement is signed by both parties until the end of the
program year, June 30, 2001.
b. The funding provided in this Agreement shall be for the program
year January 1, 2001 to June 30, 2001.
c. If the Department determines the Recipient has failed to
comply with the grant program, the Recipient shall repay a
portion or all of the grant funds awarded. The Department may
use any appropriate civil or criminal remedy available if the
Recipient fails to repay the amount specified by the
Department due to noncompliance with the grant program.
d. All provisions of the Agreement are subject to the Americans
with Disabilities Act.
e. The Recipient is not an employee or agent of the Department. The
Department assumes no liability or responsibilities beyond those
specifically stated in this Agreement.
f. The Recipient will comply with any applicable requirements of
the technology access clause attached in Exhibit D and
incorporated by reference and made a part of this Agreement.
2
The Agreement shall become effective as of the date of the last signature.
HUSKER AG PROCESSING, LLC,
/s/ Gary Kuester 1/24/01
- ------------------------------------ ----------------------------
Gary Kuester, Primary Contact Person Date
NEBRASKA DEPARTMENT
OF AGRICULTURE
- ------------------------------------ ----------------------------
Merlyn Carlson, Director Date
3