Document:

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                                                                    Exhibit 10.1

                                LETTER OF INTENT

                            HUSKER AG PROCESSING, LLC
                                510 LOCUST STREET
                                   P.O. BOX 10
                            PLAINVIEW, NEBRASKA 68769

                                   MAY 1, 2001

CONFIDENTIAL

Fagen, Inc.
P.O. Box 159
Granite Falls, Minnesota 56241

ICM, Inc.
310 North 1st Street
Colwich, Kansas 67030

Dear Sir or Madam:

         This letter of intent will outline the general terms and conditions
pursuant to which Fagen, Inc. ("Fagen") and ICM, Inc. ("ICM") will design and
construct a twenty million gallon per year ethanol plant (the "Facility") for
Husker Ag Processing, LLC ("Owner") and supersedes all prior letters of intent
between the parties hereto. This proposal is subject to the terms and conditions
of this letter of intent:

         1. DEFINITIVE AGREEMENT. This proposal is subject to the negotiation
and preparation of a definitive design-build agreement (the "Definitive
Agreement"), which would contain customary covenants, conditions,
representations, warranties and indemnities by the parties. The Definitive
Agreement will supersede this letter of intent, and contain among other things,
the terms and conditions set forth in Exhibit A attached hereto.

         2. EXPENSES. Each party to this letter of intent shall bear its
respective costs and expenses in connection with the negotiation, preparation,
execution and performance of the documents and transactions contemplated in this
letter of intent, and shall have no liability to any other party for such
expense.

         3. STANDBY COMMITMENT. Fagen agrees that once the Owner has raised $9
million after commencement of its public offering, at the request of Owner's
Board of Directors at anytime thereafter, Fagen will purchase $1,000,000 of
membership units, or such lesser amount requested by the Board of Directors,
upon the terms set forth in the Owner's prospectus.

         4. EXCLUSIVITY. During the term of this letter of intent the Owner
agrees that Fagen and ICM will be the exclusive developer for the Owner in
connection with matters covered by the letter of intent.

         5. ABSENCE OF ENFORCEABLE AGREEMENT. This letter of intent (except for
this Section and Sections 3 and 4, hereof, which shall remain in effect) will
expire without any action by either party hereto if a Definitive Agreement is
not executed by December 1, 2001. Except for the terms and provisions of this
Section and Sections 3 and 4 of this letter of intent, it is not an enforceable
agreement among us, but is merely a general statement of our present intent
which sets forth the general basis for the

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negotiation and preparation of the Definitive Agreement. Each of the parties to
this letter of intent also agrees that unless and until the Definitive Agreement
has been executed and delivered by the parties hereto, no party hereto has any
legal obligation of any kind whatsoever with respect to the transactions
contemplated hereby by virtue of this letter of intent or by any other written
or oral expression with respect to such transactions except, in the case of this
letter of intent, the matters referred to in this Section and Sections 3 and 4
of this letter of intent. This Section cannot be waived except by written
instrument signed by the parties to this letter of intent which specifically
refers to this section and explicitly makes such waiver.

         If you approve of this letter of intent, please so indicate by
executing and returning one copy hereof to the undersigned on or before May 1,
2001.

                                       Yours very truly,

                                       Husker Ag Processing, LLC.

                                       By: /s/ Gary Kuester
                                           -------------------------------------
                                           Gary Kuester, Chairman of the Board

         By executing below, the undersigned accept the terms of this letter of
intent, subject to the conditions contained herein.

                                       Fagen, Inc.

                                       By: /s/ Roland "Ron" Fagen
                                          --------------------------------------

                                       Its:    Chief Executive Office
                                           -------------------------------------

                                       ICM, Inc.

                                       By: /s/ Jeff Roskam
                                          --------------------------------------

                                       Its:    Senior Vice President
                                           -------------------------------------

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                                    EXHIBIT A

Owner, and Fagen, Inc., and ICM, Inc. ("Fagen/ICM") agree to use best efforts in
jointly developing the project under the following terms:

1.       Owner agrees that Fagen/ICM will design and build the Facility, if a)
         determined by Owner to be feasible; b) suitable prices and contracts
         are negotiated and signed; and c) adequate financing is obtained.

2.       Fagen/ICM will provide Owner with assistance in evaluating, from both a
         technical and business perspective

         o        Ownership organization options,
         o        The appropriate location of the proposed Facility, and
         o        Business Plan development

3.       Fagen/ICM shall assist Owner in locating appropriate management for the
         Facility.

4.       Fagen/ICM will assist Owner in presenting information to potential
         investors, potential leaders, and various entities or agencies that may
         provide project development assistance.

                                       3<PAGE>

                                                                    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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