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                                                                    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.
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         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.

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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

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