Document:

Exhibit 10.1

 

HEADS OF
AGREEMENT

 

This Heads of Agreement
(HOA) sets out the principal terms
upon which the parties being (Parties) Transocean
Group Holdings Pty Ltd or its nominee (Transocean)
and South Dakota Soy Processors, LLC (SDSP)
have incorporated High Plains Biofuels (HPB)
with a view to jointly undertake the development and construction of a
biodiesel plant (Plant) on the
land owned and occupied by SDSP in South Dakota (Land).

 

The Parties agree as
follows:

 

	
  1.

  	
   

  	
  Incorporation of High Plains Biofuels, Inc. (HPB)

  	
   

  	
  The
  parties have Incorporated a Delaware company HPB. Each own 50% of the shares
  of HPB.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  SDSP
  Obligations

  	
   

  	
  It
  is proposed that SDSP’s obligations in relation to the HPB will be to:

  (a)                                  provide the site upon which the Plant will
  be developed and constructed (being the Land as referred above);

   

  (b)                                 put forward a proposal for project
  management services in relation to the Plant on commercially acceptable terms
  to the HPB and any financiers;

   

  (c)                                  provide the ongoing daily administration/
  management of the Plant: 

   

  (d)                                 prepare operating budgets for the Plant
  development, construction and operation;

   

  e)                                      provide the soy processing and crushing
  facility for processing of all soy feed stock required in relation to Plant
  operations; and

   

  (f)                                    source one or more strategic partners to provide
  feed stock to the Plant. 

   

  In return
  for the above, SDSP will be entitled to normal arm’s length commercial fees —
  taking into account the fact that SDSP will be a major shareholder in HPB.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Transocean
  Obligations

  	
   

  	
  It
  is proposed that Transocean’s obligations in relation to HPB will be to:

  (a)                                  raise any necessary seed capital funding;

   

  (b)                                 provide strategic
  and corporate advice in 

  

 

 

	
   

  	
   

  	
   

  	
   

  	
  relation to the development of the Plant, capital raisings to finance the development of the Plant and the future
  listing of HPB on a recognized stock exchange:

   

  (c)                                  completion of initial due diligence
  required in associated with an investment memorandum;

   

  (d)                                 act as lead manager and coordinator for all
  debt and equity funding required by HFB to complete the development and
  construction of the Plant; 

   

  (e)                                  provide strategic and corporate advice and
  assistance in relation to the development of any patentable processes and or
  intellectual property protection; and

   

  (f)                                    provide strategic and corporate assistance in the
  development of bio diesel and off take distribution strategies and
  arrangements.

   

  In
  return for the above, Transocean will be entitled to normal arm’s length
  commercial fees — taking into account the fact that Transocean will be a
  major shareholder in HPB.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Joint Contributions

  	
   

  	
  In addition to the obligations set out in
  clauses 2 and 3, the parties agree that they will jointly use their best
  endeavours to:

  (a)                                  prepare an investment memorandum for the
  purposes of securing debt/equity funding for HPB;

   

  (b)                                 source and secure technology rights in
  relation to the design, construct and operation of the Plant;

   

  (c)                                  source an off-take agreement for all biodiesel produced
  from the Plant; 

   

  (d)                                 source construction
  and management services with respect to the design and construction of the
  Plant;

  

 

 

	
   

  	
   

  	
   

  	
   

  	
  (e)                                  Any other agreed matters that are integral
  to the development, construction and operations of the Plant.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Stockholders Agreement

  	
   

  	
  The parties agree to enter into a Stockholders
  Agreement to govern their relationship in respect of HPB and the design,
  construction and operation of the Plant. The material terms of the
  Stockholders Agreement will be as follows:

  (a)                                  each of Transocean and SDSP own 50% of the
  fully diluted issued shares of common stock in HPB;

   

  (b)                                 each of Transocean and SDSP may nominate
  up to 4 directors to the board of directors of HPB;

   

  (c)                                  each of Transocean and SDSP will have 50%
  of the voting rights at each meeting of shareholders and meeting of directors
  of HPB;

   

  (d)                                 the parties will consider jointly
  developing other biodiesel plants; and 

   

  (e)                                  other terms and conditions that are customary in stockholders agreements.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  Formal Agreement

  	
   

  	
  As soon as practicable after the date of this
  HOA, the parties agree to negotiate in good faith the terms and conditions of
  a formal Stockholders Agreement to more fully document the intentions of the
  parties as set out in this HOA.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  Governing Law

  	
   

  	
  This HOA and the formal Stockholders Agreement
  will be governed by the laws of the jurisdiction in which HPB is incorporated
  and the parties agree to submit to the non exclusive jurisdiction of the
  courts of that place.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  Entire Agreement

  	
   

  	
  This HOA supersedes all previous agreements
  about its subject matter and embodies the current entire agreement between
  the parties.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
   

  	
  Further Assurances

  	
   

  	
  Each party must do all things necessary to
  give full effect to the terms of this HOA and the transactions 

  

 

 

	
   

  	
   

  	
   

  	
   

  	
  contemplated by this HOA.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.

  	
   

  	
  Counterparts

  	
   

  	
  This HOA may be executed in any number of
  counterparts (including by way of facsimile) each of which shall be deemed
  for all purposes to be an original and all such counterparts taken together
  shall be deemed to constitute one and the same instrument.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11.

  	
   

  	
  Confidentiality

  	
   

  	
  The parties acknowledge and agree that the
  terms of the HOA shall remain confidential as between them and neither of
  them will use or disclose these terms to any other person other than their respective
  advisors or as required by law.

  

 

 

	
  Executed as an agreement

  	
   

  
	
  EXECUTED BY

  	
   

  
	
  TRANSOCEAN GROUP HOLDINGS PTY LTD

  	
   

  
	
  by
  its duly authorized representative:

  	
   

  
	
  EXECUTED BY

  	
   

  
	
  SOUTH DAKOTA SOYBEAN PROCESSORS, LLC

  	
   

  
	
  by
  its duly authorized representative:

  	
   

  
	
   

  
	
   

  	
   

  
	
  /s/ James Henderson

  	
   

  
	
  James
  Henderson

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  April 28,
  2006

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Paul Wessel

  	
   

  
	
  Witness

  	
   

  
	
  Paul
  Wessel

  	
   

  
	
   

  	
   

  
	
  April 28,
  2006

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  EXECUTED BY

  
	
  SOUTH DAKOTA SOYBEAN PROCESSORS, LLC

  
	
  by
  its duly authorized representative:

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Rodney Christianson

  	
   

  
	
  Rodney
  Christianson

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  April 28,
  2006

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Thomas J. Kersting

  	
   

  
	
  Witness

  	
   

  
	
  Tom
  J. Kersting

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  April 28,
  2006Exhibit 10.1

 

 

SETTLEMENT
AGREEMENT AND

DISENTANGLEMENT TRANSITION PLAN

 

THIS
SETTLEMENT AGREEMENT AND DISENTANGLEMENT TRANSITION PLAN (“Agreement”) is made
and entered into as of this 10th day of February, 2006, by and between Nextel
Operations, Inc., for itself and as authorized agent of and for Nextel of
California, Inc., Nextel Communications of the MidAtlantic, Inc., Nextel of New
York, Inc., Nextel South Corp., Nextel of Texas, Inc. and Nextel West Corp.
(collectively, “Nextel”) and Metro One Telecommunications, Inc. (“Metro One”). The
foregoing parties are sometimes referred to individually as a “Party” and
collectively as the “Parties.”

 

RECITALS

 

WHEREAS,
Nextel and Metro One entered into that certain Master Services Agreement for
Directory Assistance Services dated January 1, 2005 (the “Master Services
Agreement”) pursuant to which Metro One provided certain directory assistance
services to Nextel; and

 

WHEREAS,
on or about October 14, 2005 Nextel notified Metro One of its intent to
terminate the Master Services Agreement for convenience pursuant to
Section 11.2.2 thereof; and

 

WHEREAS,
Nextel filed a complaint against Metro One in the United States District Court
for the Eastern District of Virginia (the “Court”), Civil Action No. 1:05
CV-1452, captioned Nextel Operations, Inc. v. Metro One Telecommunications,
Inc., and Metro One has filed its answer and counterclaims thereto
(collectively, the “Litigation”); and

 

WHEREAS,
on or about December 21, 2005, on the application of Nextel, the Court
entered a preliminary injunction requiring, among other things, Metro One to
continue meeting the prescribed service levels under the Master Services
Agreement and directing the Parties to continue in good faith to negotiate the
provisions of a disentanglement transition plan as contemplated by the Master
Services Agreement (the “Preliminary Injunction”); and

 

WHEREAS,
the Parties now desire to resolve the claims raised in the Litigation to avoid
further expenditure of time and the expenses of contested litigation; and

 

WHEREAS,
the Parties also desire to enter into a mutually acceptable “disentanglement
transition plan” (the “Disentanglement Plan”) as contemplated by
Section 12 of the Master Services Agreement;

 

NOW,
THEREFORE, in consideration of the covenants and mutual promises herein
contained, and for other good and valuable consideration, the sufficiency of
which is hereby acknowledged, the parties hereby agree as follows.

 

AGREEMENT

 

1.             Incorporation of Recitals. The
above recitals are true and are hereby incorporated herein.

 

 

2.             Releases and Dismissal of
Litigation. On the Effective Date (as defined below) Nextel and Metro One
shall (a) execute and deliver a mutual release substantially in the form
of Exhibit ”A” hereto that shall, among other things, provide for the
release of all claims that have, or could have, been raised in the Litigation;
and (b) file a stipulated dismissal of the Litigation substantially in the
form of Exhibit ”B” hereto.

 

3.             Effective Date. The “Effective
Date” for purposes of this Agreement shall be the later of
(i) March 31, 2006; or (ii) the date that is five (5) business
days after payment of the last installment of the Nextel Payment (as defined in
Section 6 below).

 

4.             Release of Preliminary
Injunction. Upon the execution and delivery of this Agreement, the Parties
shall file an order in the form attached hereto as Exhibit ”C” dissolving
the Preliminary Injunction and releasing the bond posted in connection
therewith.

 

5.             Disentanglement Plan. The
Parties hereby agree to the Disentanglement Plan set forth in Sections 5 and 6
hereof, and further agree that it constitutes the disentanglement transition
plan contemplated by Section 12 of the Master Services Agreement:

 

a.             Transition.
Nextel shall transfer directory assistance calls for its customers from Metro
One on a call center-by-call center basis. Schedule 1 lists, by
location, the Metro One call centers currently providing services to Nextel
under the Master Services Agreement (each a “Call Center”) and, for each Call
Center a “Planned Transition Date” and a “Termination Date.”

 

b.             Obligations
of Nextel. For each Call Center for which Schedule 1 specifies
a Planned Transition Date, Nextel shall use its best efforts to transfer
directory assistance calls of its customers from that Call Center on or before
the specified Planned Transition Date. If Nextel is unable to complete the
transition by the Planned Transition date, Nextel shall continue to use its
best efforts to complete the transition as soon as possible thereafter. Once all
Nextel calls have been transitioned from a Call Center for a period of
twenty-four (24) hours (the “Actual Transition Date”), the transfer of such
calls shall be deemed complete and Nextel shall not attempt to transfer any
such calls back to such Call Center.

 

Other
than as specified in Section 5.d, below, Nextel shall cease routing
directory assistance calls from its customers to each Call Center by no later
than the specified Termination Date for such Call Center.

 

c.             Obligations
of Metro One. Until the earlier of (i) the Actual Transition Date, or
(ii) the Termination Date, Metro One shall continue to provide Services to
Nextel from that Call Center as required by the Master Services Agreement,
including without limitation maintaining the Service Level Requirements set
forth in Section 2.4 and Schedule 2.4 of the Master Services
Agreement (“Service Levels”). On the earlier of (i) the Actual Transition
Date; or (ii) the Termination Date, Metro One shall have no further
obligation (other than as specified in subsection 5.d below) to perform
its obligations and provide Nextel with any of the Services under
Section 2.3 and the related Schedules and Attachments of the Master
Service Agreement, including without limitation maintaining Service Levels with
respect to any Nextel calls routed to the applicable Call Center, provided,
however, that nothing in this subsection shall be deemed

 

2

 

to prevent Metro One from
continuing to operate a particular Call Center after the Actual Transition Date
or Termination Date, as applicable, to serve customers of carriers other than
Nextel.

 

In the
event that any Termination Date must be extended as a result of any act or
omission within the sole control of Metro One, such that the Actual Transition
Date occurs later than the specified Termination Date, then Metro One’s
obligations to perform its obligations and provide Nextel with the Services
under Section 2.3 and the related Schedules and Attachments of the Master
Services Agreement, including without limitation maintaining Service Levels
with respect to any Nextel calls routed to the applicable Call Center, shall
continue until the Actual Transition Date.

 

d.             Inability
to Transfer Calls by Termination Date. In the event that Nextel fails to
meet its obligation to transition all directory assistance calls from a
particular Call Center by the specified Termination Date, or if any transition
of Nextel customer calls from such Call Center is unsuccessful on or after such
Termination Date then, at the written request of Nextel, Metro One will attempt
to service such calls from its remaining call centers, consistent with the
capacity of such remaining call centers; provided, however, that
Metro One shall have no obligation to maintain Service Levels as to such calls
or to keep any particular Call Center(s) open for the purpose of servicing such
calls.

 

e.             Nextel
Consent to Rerouting of Calls. Notwithstanding subsection 5.c, above,
Metro One may request in writing that Nextel consent to the rerouting of
directory assistance calls away from a particular Call Center prior to the
specified Termination Date. If Nextel consents in writing (the “Nextel Consent”),
which consent shall not be unreasonably withheld, Metro One may reroute any calls
received from Nextel at such Call Center to another Call Center of Metro One’s
choice; provided, however, that Metro One shall maintain the
Service Levels for such rerouted calls until the Actual Transition Date or the
Termination Date, as applicable. Once all Nextel calls are rerouted from a Call
Center in accordance with this subsection 5.e, Metro One may release or
terminate the employees working at such Call Center in its sole discretion.

 

f.              Metro
One Service Level Reports. Within two (2) days following the last day of
February, 2006 Metro One shall provide to Nextel a report on the Service Levels
for the month of February and shall make the appropriate personnel
available for a formal meeting to discuss such reports. On or before
March 10, 2006, Metro One shall provide Nextel a report on the Service
Levels for the first seven (7) days of March and shall make the
appropriate personnel available for a formal meeting to discuss such report. Each
such date is referred to herein as a “Report Date,” and each period for which
such reports are provided is referred to herein as a “Reporting Period.”

 

g.             Nextel
Payment for Services. Nextel shall continue to make payments to Metro One
for all Services provided by Metro One to Nextel in accordance with the terms
of, and subject to the conditions in, the Master Services Agreement and this
Agreement, including without limitation Services provided pursuant to
subsections 5.c, 5.d and 5.e, and 5.f hereof. Such payments shall be in
addition to the Nextel Payment (as defined in Section 6 below).

 

3

 

6.             Nextel Payment. Nextel shall
pay to Metro One the aggregate sum of EIGHT MILLION TWO HUNDRED FIFTY THOUSAND
AND 00/100 DOLLARS ($8,250,000.00) in installments (the “Nextel Payment”). The
first installment of Nextel Payment in the amount of $2,500,000.00 was paid by
Nextel to Metro One on or about December 14, 2005.

 

a.             Remaining
Nextel Payment. The remaining Nextel Payment in the amount of $5,750,000
(the “Remaining Nextel Payment”) shall be paid in three (3) installments, as
follows, and on the dates specified below (each a “Nextel Payment Date”):

 

(i)                                     $1,916,668.00
no later than March 20, 2006; and

 

(ii)                                  $1,916,666.00
no later than twenty (20) days after the February, 2006 Report Date; and

 

(iii)                               $1,916,666.00
no later than twenty (20) days after the March, 2006 Report Date.

 

b.             Extension
of Nextel Payment Dates. If any Termination Date must be extended as a
result of any act or omission within the sole control of Metro One, then any
upcoming Nextel Payment Date hereunder shall be extended one (1) day for every
day that such Termination Date must be extended as a result of such act or
omission. The extension of upcoming Nextel Payment Dates as provided herein
shall not, standing alone, entitle Nextel to withhold any installment of the
Remaining Nextel Payment, whether in accordance with Section 6.d hereof or
otherwise.

 

c.             Adjustments
to Remaining Nextel Payment. If, following the execution date of this
Agreement, Service Levels are not met by Metro One for any Reporting Period,
and Nextel is entitled to any Adjustment Credits pursuant to Section 6.3
of the Master Services Agreement and Schedule 2.4 thereof as to such
missed Service Levels, any such credits shall not only be applied to the
amounts due Metro One under the Master Services Agreement, but also to the
installment of the Remaining Nextel Payment due for such Reporting Period. The
application of Adjustment Credits to such installment of the Remaining Nextel
Payment shall not be subject to the limitations on the At Risk Amount as set
forth in Section II.C of Schedule 2.4 of the Master Services
Agreement.

 

d.             Nextel
Election to Withhold Installment of Remaining Nextel Payment. Nextel may
elect, in lieu of its remedies in the subsection 6.c, above, to withhold
payment of the installment of the Remaining Nextel Payment applicable to a
Reporting Period if Metro One fails to meet the standards prescribed in
Schedule 2.4 of the Master Services Agreement for the Service Levels described
therein as “accessibility,” “speed of answer,” “abandon rate,” “listing
accuracy,” or “service quality” on:

 

(i)                                     six
(6) or more occasions during January, 2006; or

 

(ii)                                  four
(4) or more occasions during the February, 2006, Reporting Period; or

 

4

 

(iii)                               three
(3) or more occasions during the March, 2006 Reporting Period;

 

provided,
however, that, if Nextel fails to meet any one of the Planned Transition
Dates set forth in Schedule 1 during the February, 2006 or March,
2006 Reporting Periods, Nextel may elect to withhold the installment of the
Remaining Nextel Payment due for such Reporting Period only if Metro One fails
to satisfy the above-described Service Levels on six (6) or more occasions
during the February, 2006 Reporting Period or on six (6) or more occasions
during the March, 2006 Reporting Period, as applicable. Nextel’s election not
to pay an installment of the Remaining Nextel Payment as provided in this
subsection 6.d shall not affect Metro One’s entitlement to receive
payments for Services under the Master Services Agreement during such Reporting
Period, subject to the Adjustment Credits chargeable against such payments
under the Agreement.

 

7.             Amendment of Master Services
Agreement. To the extent that this Agreement is inconsistent with the terms
of the Master Services Agreement, the Master Services Agreement shall be deemed
amended to conform to the provisions of this Agreement. The Master Services
Agreement shall otherwise remain in full force and effect. The Master Services
Agreement shall continue to govern Metro One’s provision of, and Nextel’s
payments for, Services for so long as Metro One provides Services to Nextel
under this Agreement.

 

8.             Entire Agreement. This
Agreement, including the exhibits and schedules thereto, and, to the extent it
is not inconsistent with this Agreement, the Master Services Agreement, contain
the entire agreement between the Parties agreements with regard to the matters
set forth herein and supersede any and all prior agreements and understandings,
whether written or oral, of the Parties hereto relating to the subject matter
herein. This Agreement may be amended only by written instrument signed by the
Parties.

 

9.             Binding Agreement. This
Agreement is binding upon and inures to the benefit of the Parties hereto and
their respective members, employees, agents, shareholders, officers, directors
(in their individual and representative capacities), subsidiaries,
predecessors, affiliates, parent corporations, if any, joint ventures,
successors, assigns, administrators, and trustees.

 

10.           Confidentiality. The terms and
conditions of this Agreement shall be considered Confidential Information
under, and shall be subject to, Section 7.3 of the Master Services Agreement.

 

11.           Authorization. Each Party
represents and warrants that its representatives executing this Agreement are
fully authorized to do so on its behalf and Nextel Operations, Inc. represents
and warrants that it is authorized to execute and deliver this Agreement for
and on behalf of Nextel of California, Inc., Nextel Communications of the
MidAtlantic, Inc., Nextel of New York, Inc., Nextel South Corp., Nextel of
Texas, Inc. and Nextel West Corp.

 

12.           Defined Terms. Any capitalized
term used, but not defined, herein shall have the meaning ascribed to it by the
Master Services Agreement.

 

5

 

13.           Effect of Section Headings.
The section headings appearing in this Agreement are inserted for the purpose
of convenience and reference and shall not be construed to define, limit or
extend the scope of intent of the language of the sections to which they
pertain.

 

14.           Counterparts. This Agreement
may be executed in counterparts, each one of which shall be deemed an original,
and all of which together shall be deemed the same agreement.

 

15.           No Admissions:  Nothing herein shall be deemed an admission
or acknowledgement of liability or wrongdoing by any Party.

 

IN
WITNESS WHEREOF, the Parties by and through their duly authorized
representatives, have entered into, and executed, this Agreement as of the date
first set forth above.

 

 

	
   

  	
  METRO ONE TELECOMMUNICATIONS,

  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  Printed:

  	
   

  
					

 

6

 

	
   

  	
  METRO
  ONE TELECOMMUNICATIONS,

  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ James M.
  Usdan

  
	
   

  	
   

  
	
   

  	
  Printed:

  	
  James M. Usdan

  
	
   

  	
   

  
	
   

  	
  Title:

  	
    President
  and CEO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  NEXTEL
  OPERATIONS, INC. (for itself and as authorized agent for and on behalf of
  NEXTEL OF CALIFORNIA INC., NEXTEL COMMUNICATIONS OF THE MIDATLANTIC, INC.,
  NEXTEL OF NEW YORK, INC., NEXTEL SOUTH CORP, NEXTEL OF TEXAS INC. AND NEXTEL
  WEST CORP.)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John Craine

  
	
   

  	
   

  
	
   

  	
  Printed:

  	
  John Craine

  
	
   

  	
   

  
	
   

  	
  Title:

  	
  Sr. Director, Supply
  Chain Management

  
					

 

7

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