Document:

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                                                                    EXHIBIT 10.5

--------------------------------------------------------------------------------
                                SECOND AMENDMENT
                                       TO
                  REVOLVING CREDIT AGREEMENT AND LIMITED WAIVER
--------------------------------------------------------------------------------

         Second Amendment and Limited Waiver dated as of December 31, 2001 to
Revolving Credit Agreement (the "Second Amendment"), by and among PEREGRINE
SYSTEMS, INC., a Delaware corporation (the "Borrower"), FLEET NATIONAL BANK and
the other lending institutions listed on SCHEDULE 1 to the Credit Agreement (as
hereinafter defined) (the "Lenders"), amending certain provisions of the
Revolving Credit Agreement dated as of October 29, 2001 (as amended and in
effect from time to time, the "Credit Agreement") by and among the Borrower, the
Lenders and FLEET NATIONAL BANK in its capacity as administrative agent for the
Lenders (the "Administrative Agent") and waiving certain other provisions of the
Credit Agreement as more fully set forth herein. Terms not otherwise defined
herein which are defined in the Credit Agreement shall have the same respective
meanings herein as therein.

         WHEREAS, the Borrower and the Lenders have agreed to modify certain
terms and conditions of the Credit Agreement as specifically set forth in this
Second Amendment and waive certain other terms and conditions of the Credit
Agreement as specifically set forth in this Second Amendment;

         NOW, THEREFORE, in consideration of the premises and the mutual
agreements contained herein and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
hereby agree as follows:

         SECTION 1. AMENDMENT TO SECTION 1.1 OF THE CREDIT AGREEMENT. Section
1.1 of the Credit Agreement is hereby amended as follows:

         (a)   the definition of "Applicable Margin" is hereby amended by
deleting such definition in its entirety and restating it as follows:

               APPLICABLE MARGIN. For each period commencing on an Adjustment
         Date through the date immediately preceding the next Adjustment Date
         (each a "RATE ADJUSTMENT PERIOD"), the Applicable Margin shall be the
         applicable margin set forth below with respect to the Leverage Ratio,
         as determined for the Reference Period of the Borrower and its
         Subsidiaries ending on the fiscal quarter ended immediately prior to
         the applicable Rate Adjustment Period.

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                                      -2-

<Table>
<Caption>
----------- ------------------ --------- -------------- ------------------ -------------------
                                 BASE      EURODOLLAR        LETTER OF
             LEVERAGE RATIO      RATE      RATE LOANS         CREDIT          COMMITMENT FEE
  LEVEL                          LOANS                         FEES
----------- ------------------ --------- -------------- ------------------ -------------------
<S>         <C>                <C>       <C>            <C>                <C>

    IB      Greater than or
            equal to            1.25%        3.50%            3.50%               .50%
            4.00:1.00
----------- ------------------ --------- -------------- ------------------ -------------------
    IA      Less than
            4:00:1.00 but       0.75%        3.00%            3.00%               .50%
            greater than or
            equal 3.00:1.00
----------- ------------------ --------- -------------- ------------------ -------------------
    I       Less than
            3.00:1.00 but         0%         2.25%            2.25%               .50%
            greater than or
            equal to
            2.00:1.00
----------- ------------------ --------- -------------- ------------------ -------------------
    II      Less than
            2.00:1.00 but
            greater than or       0%         1.75%            1.75%               .50%
            equal to
            1.50:1.00
----------- ------------------ --------- -------------- ------------------ -------------------
   III      Less than
            1.50:1.00 but
            greater than or       0%         1.50%            1.50%              .375%
            equal to
            1.00:1.00
----------- ------------------ --------- -------------- ------------------ -------------------
    IV      Less than             0%         1.25%            1.25%              .375%
            1.00:1.00
----------- ------------------ --------- -------------- ------------------ -------------------

</Table>

             Notwithstanding the foregoing, (a) for the Revolving Credit
         Loans outstanding and the Letter of Credit Fees and the Commitment Fee
         payable during the period commencing on the Closing Date through
         February 10, 2002, the Applicable Margin shall not be lower than the
         Applicable Margin set forth in Level II above (except for the
         Applicable Margin on any Revolving Credit Loans made from the Closing
         Date through November 11, 2001, which shall be at Level II above until
         the applicable Interest Period therefor expires and then shall be
         governed by this paragraph (a)); (b) for the Revolving Credit Loans
         outstanding and the Letter of Credit Fees and the Commitment Fee
         payable during the period commencing on February 11, 2002 through the
         date immediately preceding the first Adjustment Date to occur after the
         fiscal quarter ending March 30, 2002, the Applicable Margin shall not
         be lower than the Applicable Margin set forth in Level IA above; and
         (c) if the Borrower fails to deliver any Compliance Certificate
         pursuant to Section 8.4(c) hereof then, for the period commencing on
         the next Adjustment Date to occur subsequent to such failure through
         the date immediately following the date on which such Compliance
         Certificate is

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                                      -3-

         delivered, the Applicable Margin shall be the highest Applicable Margin
         set forth above.

         (b) The definition of "Senior Funded Debt" is hereby amended by
deleting such definition in its entirety and restating it as follows:

             SENIOR FUNDED DEBT. At any time of determination, the sum of
         (a) Consolidated Total Funded Debt, PLUS (b) without duplication, at
         any time from and after February 11, 2002, and solely for purposes of
         calculating compliance with Section 10.3 hereof, Consolidated
         Outstanding Indebtedness, and MINUS (c) Subordinated Debt.

         (c) Section 1.1 of the Credit Agreement is further amended by inserting
the following definitions in the appropriate alphabetical order:

             CONSOLIDATED OUTSTANDING INDEBTEDNESS. With respect to the
         Borrower and its Subsidiaries, the aggregate amount of Consolidated
         Total Funded Debt of the Borrower and its Subsidiaries outstanding on
         February 11, 2002 (whether or not such Indebtedness is subsequently
         repaid or reduced in whole or in part), other than Revolving Credit
         Loans owing under the Credit Agreement.

             CONSOLIDATED UNENCUMBERED CASH. The aggregate amount of cash
         and Cash Equivalents of the Borrower and its Subsidiaries which is not
         subject to any lien, encumbrance, security interest or other claim
         whatsoever, except for a lien in favor of the Administrative Agent, for
         the benefit of the Administrative Agent and the Lenders, to secure the
         Obligations under the Loan Documents and other than a lien permitted by
         Section 9.2.1(xiii).

             NET CASH. As of any date of determination, an amount equal to
         (a) Consolidated Unencumbered Cash as of such date, less (b) the
         aggregate amount of Senior Funded Debt of the Borrower and its
         Subsidiaries on such date.

         SECTION 2. AMENDMENT TO SECTION 8 OF THE CREDIT AGREEMENT. Section 8 of
the Credit Agreement is hereby amended as follows:

         (a) Section 8.4(d) of the Credit Agreement is hereby amended by
deleting Section 8.4(d) in its entirety and restating it as follows:

             (d) (i) by not later than Tuesday, February 12, 2002 and then
         every other Tuesday of each calendar week thereafter until March 31,
         2002, the Borrower's cash flow forecast for a period and in form
         acceptable to the Administrative Agent; and (ii) within forty five (45)
         days after the end of each fiscal quarter or at such earlier time as
         the Administrative Agent or the Required Lenders may reasonably
         request, an Accounts Receivable aging report in form acceptable to the
         Administrative Agent and the Required Lenders;

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                                      -4-

         (b) Section 8.18 of the Credit Agreement is hereby amended by deleting
the words "by not later than one hundred twenty (120) days after the Closing
Date" which appear in the last sentence thereof and substituting in place
thereof the words "by not later than one hundred sixty (160) days after the
Closing Date".

         (c) Section 8 of the Credit Agreement is further amended by inserting
immediately after the end of Section 8.19 the following:

             8.20. PLEDGE OF CERTAIN ADDITIONAL ASSETS. If (a) an Event of
         Default has occurred and is continuing or (b) the Borrower's
         consolidated revenues for the fiscal quarter ending March 31, 2002 do
         not exceed $185,139,000 or (c) EBITDA as of March 31, 2002 for the
         fiscal quarter ended March 31, 2002 does not exceed $9,953,000, the
         Borrower shall, and shall cause any applicable Guarantor to,
         immediately grant to the Administrative Agent for the benefit of the
         Administrative Agent and the Lenders, a first priority perfected
         security interest in all of the cash, Cash Equivalents, securities and
         other investment property of the Borrower or such Guarantor (the
         "Additional Collateral") with a collateral value (as determined by the
         Administrative Agent in its reasonable discretion) of not less than
         $25,000,000 and, in addition, the Administrative Agent shall be
         permitted to take all action necessary to effectuate such pledge and
         perfect its security interest in such Additional Collateral, including,
         but not limited to releasing from escrow any pledge agreement executed
         by the Borrower or such Guarantors on or about February 11, 2002 and/or
         amending any Security Agreement to so include such Additional
         Collateral, and the Borrower shall, and shall cause each Guarantor, to
         take all action which the Administrative Agent shall request in order
         to effectuate such pledge and perfect the Administrative Agent's
         security interest in such Additional Collateral, and shall deliver all
         corporate or similar documentation, authorizations and legal opinions
         as the Administrative Agent may reasonably request. The parties hereto
         hereby agree that any security agreement, pledge agreement or similar
         security documents executed in connection with this Section 8.21 shall
         constitute a "Security Document" hereunder.

             8.21. PLEDGE OF INTELLECTUAL PROPERTY ASSETS. The Borrower
         will, and will cause each Material Domestic Subsidiary to, as soon as
         practicable but in no event later than May 10, 2002, (a) file for
         registration of all material copyrights with the United States
         Copyright Office, (b) enter into an amendment to the applicable
         Security Agreement to grant to the Administrative Agent, for the
         account of the Administrative Agent and the Lenders, a first priority
         perfected security interest in all of its copyrights, patents, patent
         rights, trademarks, service marks, trademark and service mark rights
         and other general intangibles constituting intellectual property,
         together with the goodwill appurtenant thereto (collectively, the "IP
         Collateral"), (c) enter into a copyright mortgage with respect to such
         copyrights in form and substance reasonably acceptable to the
         Administrative Agent, (d) enter into a trademark collateral assignment
         with respect to such trademarks and service marks in form and substance

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                                      -5-

         reasonably acceptable to the Administrative Agent, (e) enter into a
         patent assignment with respect to such patents in form and substance
         satisfactory to the Administrative Agent and, in addition, the
         Administrative Agent shall be permitted to take all action necessary to
         effectuate such pledge and perfect its security interest in such IP
         Collateral, and the Borrower shall, and shall cause each Material
         Domestic Subsidiary, to take all action which the Administrative Agent
         shall request in order to effectuate such pledge and perfect the
         Administrative Agent's security interest in such IP Collateral, and
         shall deliver all corporate or similar documentation, authorizations
         and legal opinions as the Administrative Agent may reasonably request.
         The parties hereto hereby agree that any security agreement, pledge
         agreement or similar security documents executed in connection with
         this Section 8.22 shall constitute a "Security Document" hereunder

         SECTION 3. AMENDMENT TO SECTION 10 OF THE CREDIT AGREEMENT. Section 10
of the Credit Agreement is hereby amended as follows:

         (a) Section 10.1 - 10.4 of the Credit Agreement is hereby amended by
deleting Section 10.1 - 10.4 in their entirety and restating them as follows:

             10.1. LEVERAGE RATIO. The Borrower will not permit the
         Leverage Ratio to exceed (a) 2.50:1.00 at any time from the Closing
         Date through December 30, 2001 or (b) 2.50:1.00 at any time from and
         after April 1, 2002.

             10.2. QUICK RATIO. The Borrower will not permit the ratio of
         Consolidated Quick Assets to Consolidated Current Liabilities at any
         time to be less than (a) 1.10:1.00 from the Closing Date through and
         including December 30, 2001; (b) 1.10:1.00 from April 1, 2002 through
         and including June 29, 2002; (c) 1.00:1.00 from June 30, 2002 through
         and including September 29, 2002; (d) 1.10:1.00 from September 30, 2002
         through and including March 30, 2003 and (e) 1.25:1.00 at any time
         thereafter.

             10.3. SENIOR FUNDED DEBT TO EBITDA. The Borrower will not at
         any time permit the ratio of Senior Funded Debt outstanding on the date
         of determination to EBITDA for the Reference Period ending on or
         immediately prior to such date, as the case may be, to exceed (a)
         1.00:1.00 at any time from the Closing Date through December 30, 2001;
         or (b) 0.349:1.00 at any time from and after February 11, 2002.

             10.4. MINIMUM EBITDA. Commencing with the fiscal quarter
         ending March 31, 2002, the Borrower will not permit EBITDA for any
         Reference Period ending during any period described in the table below
         to be less than the amount set forth opposite such period in such
         table:

<Table>
<Caption>

----------------------------------------- --------------------------------------
       FISCAL QUARTER ENDED                          MINIMUM AMOUNT
----------------------------------------- --------------------------------------
<S>                                       <C>

March 31, 2002                                 $41,000,000
----------------------------------------- --------------------------------------

</Table>

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                                      -6-
<Table>
<Caption>

----------------------------------------- --------------------------------------
<S>                                       <C>

June 30, 2002                                  $39,000,000
----------------------------------------- --------------------------------------
September 30, 2002                             $41,000,000
----------------------------------------- --------------------------------------
December 31, 2002                              $52,000,000
----------------------------------------- --------------------------------------
March 31, 2003                                 $60,000,000
----------------------------------------- --------------------------------------
June 30, 2003                                  $46,000,000
----------------------------------------- --------------------------------------
September 30, 2003                             $48,000,000
----------------------------------------- --------------------------------------
December 31, 2003                              $60,000,000
----------------------------------------- --------------------------------------
each fiscal quarter ending thereafter          $70,000,000
----------------------------------------- --------------------------------------

</Table>

         (b) Section 10 of the Credit Agreement is further amended by inserting
immediately at the end of the text of Section 10.4 the following:

             10.5. MINIMUM NET CASH. The Borrower will not permit Net Cash to be
less than $40,000,000 at any time from and after February 11, 2002.

         SECTION 4. AMENDMENT TO SECTION 13 OF THE CREDIT AGREEMENT. Section
13.1(c) of the Credit Agreement is hereby amended by inserting immediately after
the reference to Section 8.18 the following: "8.20, 8.21".

         SECTION 5. LIMITED WAIVER. The Borrower has informed the Administrative
Agent and the Lenders that on December 31, 2001 the Borrower was in default of
certain of its financial covenants contained in Section 10.1 - 10.3 of the
Credit Agreement for the period of December 31, 2001 through and including the
effective date of this Second Amendment (the "Default Period") and was also in
default of its financial covenant contained in Section 10.4 of the Credit
Agreement for the quarter ended December 31, 2001. The Borrower's failure to
comply with such financial covenants during the Default Period constituted an
Event of Default for such period (which Event of Default will be subsequently
cured by the Borrower on the effective date of this Second Amendment). The
Borrower has requested that the Lenders waive, to the limited extent necessary
to permit the noncompliance for the Default Period, the requirements of Section
10.1 - 10.3 of the Credit Agreement for the Default Period and Section 10.4 of
the Credit Agreement for the fiscal quarter ended December 31, 2001. Subject
always to compliance by the Borrower with the terms and conditions of the Credit
Agreement and the other Loan Documents and the terms and conditions contained
herein, from and after the effective date of this Second Amendment, the Lenders
hereby waive the provisions of Section 10.1 - 10.4. of the Credit Agreement
solely to the extent necessary to permit the above-referenced noncompliance, and
only with respect to the Default Period. In addition, in connection with this
Second Amendment, the Borrower is making a prepayment of the Revolving Credit
Loans as required by Section 6(b) of this Second Amendment. The Lenders hereby
waive, for purposes of this prepayment (and only this prepayment) the advance
notice requirement set forth in Section 3.3 of the Credit Agreement.

         SECTION 6. CONDITIONS TO EFFECTIVENESS. This Second Amendment shall not
become effective until the Administrative Agent receives the following:

         (a) a counterpart of this Second Amendment, executed by the Borrower,
each Guarantor and the Required Lenders;

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                                      -7-

         (b) evidence satisfactory to the Administrative Agent that the sum of
(i) aggregate outstanding principal amount of all Revolving Credit Loans plus
(ii) the Maximum Drawing Amount of all issued and outstanding Letters of Credit
plus (iii) any Unpaid Reimbursement Obligations is not more than $18,609,166;

         (c) a copy of the Borrower's most recent cash flow forecast; and

         (d) payment to the Administrative Agent, for the respective accounts of
the Lenders, in cash of an amendment fee for each Lender which consents to this
Second Amendment on or prior to 3:00 p.m. (Boston time) on February 11, 2002, in
an aggregate amount equal to ten basis points on the amount of the Commitment of
each such consenting Lender.

         SECTION 7. REPRESENTATIONS AND WARRANTIES. The Borrower hereby repeats,
on and as of the date hereof, each of the representations and warranties made by
it in Section 7 of the Credit Agreement (except to the extent of changes
resulting from transactions contemplated or permitted by this Credit Agreement
and the other Loan Documents and changes occurring in the ordinary course of
business that singly or in the aggregate are not materially adverse, and to the
extent that such representations and warranties relate expressly to an earlier
date), PROVIDED, that all references therein to the Credit Agreement shall refer
to such Credit Agreement as amended hereby. In addition, the Borrower hereby
represents and warrants that the execution and delivery by the Borrower of this
Second Amendment and the performance by the Borrower of all of its agreements
and obligations under the Credit Agreement as amended hereby are within the
corporate authority of the Borrower and has been duly authorized by all
necessary corporate action on the part of the Borrower.

         SECTION 8. RATIFICATION, ETC. Except as expressly amended hereby, the
Credit Agreement and all documents, instruments and agreements related thereto,
including, but not limited to the Security Documents, are hereby ratified and
confirmed in all respects and shall continue in full force and effect. The
Credit Agreement and this Second Amendment shall be read and construed as a
single agreement. All references in the Credit Agreement or any related
agreement or instrument to the Credit Agreement shall hereafter refer to the
Credit Agreement as amended hereby.

         SECTION 9. NO WAIVER. Except as expressly set forth in Section 4
hereof, nothing contained herein shall constitute a waiver of, impair or
otherwise affect any Obligations, any other obligation of the Borrower, any
Guarantor or any rights of the Administrative Agent or the Lenders consequent
thereon.

         SECTION 10. COUNTERPARTS. This Second Amendment may be executed in one
or more counterparts, each of which shall be deemed an original but which
together shall constitute one and the same instrument.

         SECTION 11. GOVERNING LAW. THIS SECOND AMENDMENT SHALL BE GOVERNED BY,
AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE COMMONWEALTH OF MASSACHUSETTS
(WITHOUT REFERENCE TO CONFLICT OF LAWS).

<Page>

                                      -8-

         IN WITNESS WHEREOF, the parties hereto have executed this Second
Amendment as a document under seal as of the date first above written.

                                       PEREGRINE SYSTEMS, INC.

                                       By: /s/ Matthew. C. Gless
                                           -------------------------------------
                                           Matthew C. Gless
                                           Chief Financial Officer

                                       FLEET NATIONAL BANK

                                       By: /s/ William S. Rowe
                                           -------------------------------------
                                           William S. Rowe, Vice President

                                       UNION BANK OF CALIFORNIA, N.A.

                                       By: /s/ Paul K. Moyer
                                           -------------------------------------
                                           Paul K. Moyer
                                           Vice President

                                       BANK OF AMERICA, N.A.

                                       By: /s/ Michael J. Dasher
                                           -------------------------------------
                                           Michael J. Dasher
                                           Managing Director

                                       COMERICA BANK

                                       By: /s/ Craig A. Nelson
                                           -------------------------------------
                                           Craig A. Nelson
                                           Vice President

                                       KEYBANK NATIONAL ASSOCIATION

                                       By: /s/ Julien Michaels
                                           -------------------------------------
                                           Julien Michaels
                                           Vice President

<Page>

                                      -9-

                                       THE BANK OF NOVA SCOTIA

                                       By: /s/ Ed Kofman
                                           -------------------------------------
                                           Ed Kofman, Director

                                       BNP PARIBAS

                                       By: /s/ Rafael Lumanlan / Richard Ong Pho
                                           -------------------------------------
                                           Rafael Lumanlan / Richard Ong Pho
                                           Director / Associate

<Page>

                                      -10-

                            RATIFICATION OF GUARANTY

         Each of the undersigned guarantors hereby acknowledges and consents
to the foregoing Second Amendment as of December 31, 2001, and agrees that
the applicable Guaranty from such Guarantor dated as of October 29, 2001,
December 20, 2001 and December 24, 2001, as applicable, in favor of the
Administrative Agent for the benefit of the Administrative Agent and the
Lenders and all other Loan Documents to which each of the Guarantors are a
party remain in full force and effect, and each of the Guarantors confirms
and ratifies all of its obligations thereunder.

                                       PEREGRINE REMEDY, INC.

                                       By: /s/ Eric P. Deller
                                           -------------------------------------
                                           Eric P. Deller
                                           Secretary

                                       TELCO RESEARCH CORPORATION

                                       By: /s/ Eric P. Deller
                                           -------------------------------------
                                           Eric P. Deller
                                           Secretary

                                       HARBINGER HOLDINGS, INC.

                                       By: /s/ Eric P. Deller
                                           -------------------------------------
                                           Eric P. Deller
                                           Secretary

                                       PEREGRINE E-MARKETS, INC.

                                       By: /s/ Eric P. Deller
                                           -------------------------------------
                                           Eric P. Deller
                                           Secretary

                                       PEREGRINE DIAMOND, INC.

                                       By: /s/ Eric P. Deller
                                           -------------------------------------
                                           Eric P. Deller
                                           Secretary

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                                      -11-

                                       PEREGRINE EXTRICITY, INC.

                                       By: /s/ Eric P. Deller
                                           -------------------------------------
                                           Eric P. Deller
                                           Secretary

                                       PEREGRINE CONNECTIVITY, INC.

                                       By: /s/ Eric P. Deller
                                           -------------------------------------
                                           Eric P. Deller
                                           Secretary

                                       PEREGRINE ONTARIO BLUE JAYS, INC.

                                       By: /s/ Eric P. Deller
                                           -------------------------------------
                                           Eric P. Deller
                                           Secretary

                                       PEREGRINE CALIFORNIA PADRES, INC.

                                       By: /s/ Eric P. Deller
                                           -------------------------------------
                                           Eric P. Deller
                                           Secretary

                                       BALLGAME ACQUISITION CORPORATION

                                       By: /s/ Eric P. Deller
                                           -------------------------------------
                                           Eric P. Deller
                                           Secretary

                                       OCTOBER ACQUISITION CORPORATION

                                       By: /s/ Eric P. Deller
                                           -------------------------------------
                                           Eric P. Deller
                                           Secretary

                                       PEREGRINE BODHA, INC.

                                       By: /s/ Eric P. Deller
                                           -------------------------------------
                                           Eric P. Deller
                                           Secretary<Page>

                            BULK REFINED AND BLEACHED
                          SOYBEAN OIL SUPPLY AGREEMENT

     This BULK REFINED AND BLEACHED SOYBEAN OIL SUPPLY AGREEMENT (this
"AGREEMENT"), dated as of January 15, 2002, by and between South Dakota Soybean
Processors, 100 Caspian Ave., Volga, South Dakota 57071, a South Dakota
co-operative association (hereinafter referred to as "SELLER") and ACH Food
Companies, Inc., 7171 Goodlett Farms Parkway, Cordova, Tennessee 38018, a
Delaware corporation (hereinafter referred to as "BUYER").

                                   WITNESSETH:

     WHEREAS, BUYER desires to obtain from SELLER a continuing supply of
refined, bleached soybean oil (the "Product" or "Products") as more particularly
described in the attached Exhibit A to this Agreement during the period
hereinafter described, and SELLER desires to sell the Product to the BUYER on
the terms hereafter provided.

     NOW THEREFORE, in consideration of the above premises and the mutual
covenants herein contained, the parties agree as follows:

1.   PRODUCTS

     (A)    Subject to the terms and conditions of this Agreement, SELLER shall
sell the Products to BUYER, and BUYER shall purchase the Products from SELLER.
It is the intent of the parties that the Products will be produced by SELLER at
the Facility (as defined in Section 3(A) hereof); however, if the SELLER is
unable to meet its requirements under this Agreement, SELLER shall obtain the
Products from another source acceptable to BUYER, which acceptance shall not be
unreasonably withheld, and all other terms and provisions of this Agreement
including pricing and delivery shall remain the same.

     (B)    All items as detailed in Exhibit A "Specifications for Products"
are "At Time of Delivery" or at "Time of Shipment" as noted in Exhibit A.
Specifications may be amended at any time by mutual consent of BUYER and SELLER
following a documented change to Exhibit A.

     (C)    SELLER certifies that the Products meet Circle U Kosher
certification requirements and shall provide all paperwork reasonably required
by BUYER.

     (D)    BUYER will accept Products on the basis of accompanying Certificate
of Analysis after running basic analysis on Products, such as Peroxide Value,
Free Fatty Acid, Color and Iodine Value. It is understood that BUYER will
immediately use the Products in further processing or shipments to its
customers.

     (E)    In consideration of this Agreement and the sale of the Equipment (as
defined in the Purchase Agreement), SELLER agrees that during the Term, the
BUYER shall be the sole and exclusive buyer of the Product from the SELLER for
use in food application. SELLER may from

<Page>

time to time sell excess crude or crude de-gummed soybean oil to persons other
than BUYER, provided that the SELLER meets its obligation to provide Product to
the Buyer in the volumes provided in this Agreement.

2.   VOLUMES

     (A)    During the Term, BUYER will purchase from SELLER, and SELLER will
sell to BUYER, no less than 290 million pounds of the Product during each
Agreement Year (the "Minimum"). The term "Agreement Year", as used in this
Agreement, shall mean the 12-month period commencing on the First Shipment Date
(as defined in Section 8(A) hereof), and each 12-month period thereafter during
the Term. During the term of the first year the SELLER's sales minimum of 290
million pounds will be adjusted to reflect actual shipments made during the
first three months after the First Shipment Date.

     (B)    BUYER will provide SELLER with anticipated annual demands for the
Product as set forth in Exhibit B. SELLER agrees that it shall be able to supply
up to FIVE MILLION FIVE HUNDRED AND SEVENTY THOUSAND (5,570,000) pounds of the
Product per week (or TWO HUNDRED NINETY MILLION (290,000,000) pounds of the
Product per Agreement Year) should BUYER order such volumes. BUYER agrees to
provide SELLER with at least fourteen (14) days prior written notice of a
Purchase Order in excess of FOUR MILLION (4,000,000) pounds of the Product in
any week.

     (C)    If during any Agreement Year BUYER does not purchase (as defined in
section 4A hereof) at least 270 million pounds of Product, BUYER shall pay to
SELLER, within thirty (30) days after expiration of such Agreement Year, an
amount equal to the product of $0.0023 multiplied by the positive difference
remaining after subtracting from 270 million pounds the amount of Product
purchased by BUYER for such Agreement Year.

     (D)    If during any calendar month the BUYER does not purchase at least
22.5 million pounds of the Product, the SELLER may sell refined and bleached
soybean oil in a volume equivalent to the volume of the Unpurchased Product upon
a five (5) day written notice to BUYER. Within such five (5) day period, BUYER
may, upon written notice to SELLER, elect to purchase any of the Unpurchased
Product. SELLER shall sell the Unpurchased Product at its market price. If the
Unpurchased Product is sold for less than the purchase price for the Product as
set forth in Exhibit B, BUYER shall pay SELLER the shortfall within twenty-five
(25) days from the date of SELLER's invoice therefor. "Unpurchased Product"
means refined and bleached soybean oil in an amount (expressed in pounds) equal
to the positive difference remaining after subtracting from 22.5 million pounds
the number of pounds of Product purchased by BUYER during the calendar month in
question.

3.   PRODUCTION FACILITY

     (A)    SELLER intends to fulfill its obligations under this Agreement by
refining and bleaching soybean oil in a facility (the "Facility") to be
constructed and owned by SELLER and to be located in Volga, South Dakota. SELLER
shall commence construction of the Facility promptly after execution and
delivery of this Agreement by BUYER and shall achieve Substantial

<Page>

Completion of the Facility (as hereinafter defined) no later than September 1,
2002 (the "Completion Date"). "Substantial Completion of the Facility means (i)
completion of the construction of the Facility (including without limitation
installation of all trade fixtures and equipment, including without limitation
the Equipment, as defined in Section 3(B) hereof) substantially in accordance
all applicable laws and ordinances, such that SELLER is capable of operating an
RB soybean oil refinery at the Facility for production of the Product in the
volumes required by this Agreement, and (ii) the issuance by the governmental
authority having jurisdiction of a certificate of occupancy or similar
certificate or permit for the Facility. The Completion Date shall be extended
one day for each day Substantial Completion of the Facility is delayed by an
Excusable Cause or a Labor Cause, (as defined in Section 14(N) hereof), provided
that in no event shall the Completion Date be extended for any reason beyond
October 1, 2002. If SELLER fails to achieve Substantial Completion of the
Facility on the Completion Date, as the same may be extended in accordance with
the foregoing provisions, BUYER may thereafter terminate this Agreement
effective thirty (30) days after the Completion Date by giving written notice
thereof to SELLER within such thirty (30) day period. If BUYER so terminates
this Agreement, then within fifteen (15) days after the effective date of such
termination, SELLER shall pay BUYER an amount equal to the Fair Market Value (as
defined in Section 17 hereof) of the Equipment. If BUYER does not so terminate
this Agreement, then until such time as SELLER achieves Substantial Completion
of the Development (the "Delay Period"), SELLER shall be responsible for BUYER's
Cost to Cover (as defined in Section 6(D) hereof) with respect to the Product
that BUYER would have ordered from SELLER during the Delay Period.

     (B)    BUYER is the owner of certain soybean oil refining equipment and
related fixtures located at BUYER's facility in Columbus, Ohio (the "Ohio
Facility"), as more fully described in Exhibit C attached hereto and made a part
hereof (the "Equipment"). Upon execution and delivery by SELLER and BUYER, BUYER
shall sell the Equipment to SELLER, and SELLER and BUYER shall execute and
deliver to each other counterpart copies of the Purchase Agreement in the form
attached hereto as Exhibit D. SELLER shall provide BUYER no less than fifteen
(15) days' prior written notice (the "Equipment Removal Notice") of SELLER's
desire to remove the Equipment from its current location and install the
Equipment at the Facility. BUYER shall allow SELLER such access as SELLER shall
reasonably require to remove the Equipment. Notwithstanding the foregoing, if
BUYER sells the Ohio Facility prior to BUYER's receipt of the Equipment Removal
Notice, SELLER shall be obligated to remove the Equipment from the Ohio Facility
no later than thirty (30) days after receipt of written notice from BUYER of
such sale.

4.   PRODUCT SCHEDULING

     (A)    On each Wednesday during the term of this Agreement, BUYER shall
deliver to SELLER BUYER's standard form of purchase order ("Purchase Order") for
the shipment week commencing on the following Monday, and a good faith forecast
of BUYER'S purchases of Product for the following three weeks. Each Purchase
Order will specify the quantity for the following week. BUYER may designate
delivery destinations other than those listed in Exhibit B only by mutual
written consent of the parties and only after appropriate freight adjustments
have been agreed upon by both parties. For all purposes under this Agreement,
BUYER shall be deemed to "purchase" the Product upon delivery of a Purchase
Order as provided in this paragraph.

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     (B)    Not less than once every three months during the term of this
Agreement, BUYER shall furnish SELLER a good faith forecast of its Product
requirements for the next six (6) months. Such forecasts and the estimates given
with the Purchase Orders are not firm commitments of BUYER to order or purchase
Products, but are provided only as a guide to assist SELLER in scheduling
production.

5.   WARRANTIES REGARDING PRODUCTS

     (A)    LIMITED WARRANTIES. SELLER warrants that the Products sold under
this Agreement shall conform in all material respects to each of the following:
(i) the specifications attached hereto as Exhibit A, as amended from time to
time by agreement of the parties; (ii) all current good manufacturing practices;
and (iii) the Food and Drug Guarantee attached hereto as Exhibit E.

     (B)    CERTIFICATION OF ANALYSIS. Certificates of Analysis will be faxed to
BUYER's facilities prior to the shipment of rail car and shall specify values
for the first ten tests contained in the specifications. All tests shall be run
according to Association of Oil Chemists Society ("AOCS") methods unless
otherwise agreed to in writing by both parties. A referee laboratory agreed to
by both parties shall settle discrepancies in Product quality results.

     (C)    COMPLIANCE WITH LAWS. SELLER warrants that it shall comply at all
times with all federal, state and local laws, rules, regulations, ordinances
codes, and orders applicable to SELLER's performance of its obligations
hereunder, as well as with other legal obligations set forth in this Agreement.

6.   SHIPPING

     (A)    SELLER shall be responsible for tracking, managing and paying for
freight from time of shipment to delivery to the applicable BUYER's facility.
Shipment of the Product will be within one day of the date specified on the
Purchase Order. All freight shall be prepaid F.O.B. BUYER's facility with title
and risk of loss transferred to BUYER upon BUYER's receipt of the Product.
SELLER will deliver the Product to the BUYER's facility in its own rail cars;
however, if conditions warrant, upon mutual agreement alternate transportation
methods will be allowed.

     (B)    DEFECTIVE PRODUCTS. If any Products shipped to a BUYER facility fail
to comply with the provisions of Section 5(A) ("Defective Product"), the BUYER
facility may refuse to accept delivery of such Defective Product and such
Defective Product shall be set aside for inspection by SELLER and SELLER agrees
to promptly replace any Defective Product. Each BUYER facility shall handle such
Defective Products in accordance with SELLER's reasonable instructions so as to
minimize the extent of any such costs. If, upon reinspection of such Product, it
is determined that such Product was not Defective Product, BUYER shall reimburse
SELLER for all reasonable costs incurred by SELLER in replacing such Product,
including without limitation, shipping and handling costs.

     (C)    NORMAL SHIPMENT TIMES. Each Purchase Order shall specify the
shipment date and the desired delivery date (hereinafter referred to as "DDD").
SELLER shall ensure that the Product arrives at BUYER facilities on the DDD and
shall be liable to BUYER for any Cost of Cover (as

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defined in Section 6(D) below) BUYER incurs as a result of SELLER's failure to
ship the Product according to the Purchase Order. In the event SELLER does not
ship at designated times (using shipment to arrive beyond DDD), SELLER shall be
responsible for substituting truck deliveries at SELLER's expense. In the event
the railroad fails to deliver a railroad car to BUYER and shipments were made on
time in accordance with BUYER's Purchase Order, SELLER shall work with BUYER to
arrange for timely truck deliveries to alleviate BUYER inventory shortfall.
BUYER shall be responsible for truck freight differentials.

     In the event that BUYER desires to make a change to the shipment date, DDD,
or other requirements of the Purchase Order on less than seven (7) days notice
to SELLER, SELLER shall use diligent efforts to accommodate such change provided
that BUYER shall reimburse SELLER for any additional costs incurred by SELLER as
a result of such accommodation. SELLER shall advise BUYER whether or not it can
meet the revised ship date. If it advises that it can meet the ship date and
then fails to do so, it shall reimburse BUYER for any Cost to Cover as
referenced in Section D below. If SELLER advises it cannot meet the revised ship
date, then BUYER shall be free to cancel such order and purchase the Product
elsewhere, and SELLER shall not be responsible for BUYER's Cost to Cover.

     (D)    If SELLER notifies BUYER that it is unable to deliver Product on the
DDD Specified in the Purchase Order, and such notice does not include SELLER's
undertaking to ship such Products by an alternate method with reasonably
acceptable delivery date, BUYER shall be free to cancel such order (either by
written notice to SELLER or by prior oral notice to SELLER followed by written
confirmation of same) and purchase such Product (the "Covered Product") from any
other reasonable source. In such event, SELLER shall pay to BUYER, upon receipt
of BUYER'S invoice therefor, an amount equal to the excess of the price to BUYER
of such Covered Product over the price which BUYER would have paid had it
purchased the Covered Product from SELLER pursuant to this Agreement (the "Cost
to Cover") plus reasonable, documented out-of pocket costs incurred by BUYER as
a result of SELLER's failure to deliver Product such as:

            (i)    any BUYER customer charges for: (a) downtime due to
     late/short shipments; (b) packaging line downtime; (c) overtime; and

            (ii)   BUYER's packaging line downtime; overtime; and customer
     charges for late/short shipments; and

            (iii)  LTL freight charges and additional freight charges.

     (E)    DEMURRAGE. SELLER has the right to charge demurrage br those rail
cars unreasonably held beyond five (5) days at the rate of $30 per rail car per
day beginning on day six (6), provided rail cars arrive on a scattered basis as
shipped. BUYER shall not be responsible for, and SELLER shall pay when due, all
demurrage and other charges resulting from "slamming" by the carrier.

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7.   PRODUCT PRICING AND PAYMENT TERMS

     (A)    PRICING FOR PRODUCTS. Refining Premiums as shown in Exhibit B
(attached hereto and incorporated herein by reference) are guaranteed for a
period of five (5) years from First Shipment Date (as defined in Section 8(A)
hereof. For the final three (3) years of the Initial Term (as defined in Section
8(A) hereof), Refining Premiums shall be determined in accordance with Section
8(A) as if such final three (3) years were a Renewal Term, provided that
negotiations with respect to Refining Premiums shall commence no later than six
(6) months prior to the end of the first five (5) year period of the Initial
Term. SELLER has the right to request an increase in Refining Premiums for the
final three (3) years of the Initial Term, and such a request shall be made no
later than six (6) months prior to the end of the first five (5) year period of
the Initial Term. BUYER and SELLER will enter into good faith negotiations and
any such increase shall only be applicable to substantiated increases in
operating costs, such as costs of labor, energy, supplies and material, safety
and environmental, or landfill, or a difference in the value of refined bleached
byproducts (such as lecithin and soapstock). In the event the parties are unable
to agree on any price increases prior to the end of the first five (5) year
period of the Initial Term, then the price in effect for the Products in the
preceding year will continue in effect for the succeeding year, at the end of
which this Agreement shall automatically terminate.

     (B)    PAYMENT TERMS. SELLER shall invoice BUYER for Products upon shipment
thereof, and such invoice shall be due and payable twenty-five (25) days from
the date of the invoice.

8.   TERM, EVENTS OF DEFAULT AND TERMINATION

     (A)    LENGTH OF TERM. The term of this Agreement (the "Initial Term")
shall commence on the date of signature of this Agreement by both parties, and
shall expire eight (8) years after the date of the first shipment of Product
("First Shipment Date"), unless terminated earlier in accordance with the
provisions of this Agreement, and shall be renewable by BUYER for five (5)
subsequent periods of three (3) years each. SELLER will confirm the First
Shipment Date in writing within fifteen (15) days after the date of such first
shipment. BUYER may renew this Agreement by giving SELLER no less than eighteen
(18) months prior written notice. Upon SELLER's receipt of such notice, SELLER
and BUYER shall begin to negotiate in good faith with respect to the applicable
three-year renewal period ("Renewal Term"). Such negotiations shall continue for
a period of not less than six (6) months, unless the parties reach agreement
prior to the expiration of such six (6) month period. The Initial Term, as the
same may be extended by one or more of the Renewal Terms, is referred to herein
as the "Term." In the event the parties are unable to reach agreement at the end
of such six (6) month period, then the price in effect in the preceding year
will continue in effect for the succeeding year, at the end of which, this
Agreement shall automatically terminate.

     (B)    EVENTS OF DEFAULT. Each of the following shall constitute an Event
of Default hereunder:

            (i)    A material breach by the other party of any of the terms or
     conditions of this Agreement which (a) is not corrected within thirty (30)
     days after receipt of written

<Page>

     notification thereof, if correctable within such thirty (30) days; or (b)
     if it is not correctable within such thirty (30) days, the correction of
     which is not initiated within such thirty (30) day period and thereafter
     diligently pursued until completed.

            (ii)   BUYER'S failure to pay any amount due SELLER, and the
     continuance of such failure for thirty (30) days after written notice to
     BUYER.

            (iii)  The entry of an "Order for Relief" naming the other party as
     a "Debtor" under Title 11 of the United States Code or upon the entry of a
     decree or order by a court having competent jurisdiction in respect to any
     petition filed or action respecting a party directly involved in a
     reorganization, arrangement, creditors composition, readjustment,
     liquidation, dissolution, bankruptcy, or similar relief under any other
     present or future United States or other statute, law or regulation,
     whether or not resulting in the appointment of a receiver, liquidator,
     assignee, trustee, custodian, sequestrator or other similar official, any
     such decree or order is in effect for a period of forty-five (45)
     consecutive days; or insolvency, or similar laws affecting the enforcement
     of creditors' rights generally and subject to general principles of equity.

            (iv)   The making by the other party of an assignment for the
     benefit of creditors, or the admission by such party in writing of its
     inability to pay its debts generally as they become due, or the taking of
     action by a party in furtherance of any such action.

     (C)    EFFECT OF TERMINATION ON ACCRUED RIGHTS. Upon the occurrence of an
Event of Default, the non-defaulting party shall, subject to Section 14(M)
below, be entitled to terminate this Agreement and pursue any remedy provided in
law or equity, including injunctive relief and the right to recover any damages
it may have suffered by reason of such Event of Default.

     Upon termination of this Agreement, all rights, obligations, and causes of
action accruing hereunder prior to such termination shall survive and the
provisions of this Agreement shall continue to be controlling for the purpose of
determining the rights of the parties hereto with respect to the subject matter
hereof.

     (D)    EVENT OF DEFAULT BY SELLER. Upon the occurrence of an Event of
Default by SELLER, an amount equal to the unamortized Fair Market Value of the
Equipment shall become immediately due and payable by SELLER to BUYER without
notice or demand. Such amount shall constitute additional purchase price of the
Equipment and shall not constitute a penalty. The unamortized Fair Market Value
of the Equipment shall be calculated as of the date of occurrence of such Event
of Default. The Fair Market Value shall be amortized, using a straight line
method, over the first five Agreement Years, without interest.

9.   REPRESENTATIONS BY SELLER

     SELLER hereby represents and warrants to BUYER that:

<Page>

     (A)    SELLER is a co-operative association duly organized in the State of
South Dakota, and is duly qualified to transact business in South Dakota, and is
in good standing under the laws of the states in which it is currently or
hereafter required to be so qualified.

     (B)    This Agreement has been duly executed and delivered by SELLER and
constitutes the legal, valid, and binding obligation of SELLER, enforceable
against SELLER in accordance with its terms, except to the extent that
enforceability may be limited by applicable bankruptcy, insolvency or similar
laws affecting the enforcement of creditor's rights generally and subject to
general principles of equity.

10.  REPRESENTATION OF BUYER

     BUYER hereby represents and warrants to SELLER that:

     (A)    BUYER is a corporation duly organized, validly existing, and in good
standing under the laws of Delaware, and is duly qualified to transact business
as a foreign corporation, and is in good standing under the laws of the states
in which it is currently or hereafter required to be so qualified.

     (B)    This Agreement has been duly executed and delivered by BUYER and
constitutes the legal, valid, and binding obligation of BUYER enforceable
against BUYER in accordance with its terms, except to the extent that
enforceability may be limited by applicable bankruptcy, insolvency, or similar
laws affecting the enforcement of creditors' rights generally and subject to
general principles of equity.

11.  RIGHT OF INSPECTION

     (A)    To the extent not in violation of any confidentiality agreement to
which SELLER is a party, BUYER or its authorized representatives shall have the
right to audit and inspect those portions of SELLER's facility used to refine
and bleach Products hereunder and to review SELLER's operational records
specifically pertaining to the Products and services hereunder and only to the
extent necessary to determine compliance with the terms of this Agreement.
BUYER's representative shall have access, during SELLER's normal business hours
and under reasonable circumstances, including prior notice (which notice shall
include communications with SELLER regarding BUYER's concern), to only those
portions of the storage, production, and other facilities of SELLER which are
involved in the production of Product hereunder. At SELLER's option, BUYER's
representative shall be accompanied by a SELLER employee at all times while at
or in any of SELLER's facilities. If such inspection and or review by BUYER
reveals that the processes, procedures, practices or the like used by SELLER
with respect to its services hereunder fail to conform to appropriate procedures
and processes, SELLER shall immediately take appropriate corrective actions
(which may include suspension of SELLER'S services hereunder) for those items
which represent a public health or safety issue and shall promptly take
appropriate corrective actions (which may include suspension of SELLER'S
services hereunder) for those items which do not represent a public health or
safety issue, at BUYER's direction, until SELLER can show to BUYER's
satisfaction that its non-conforming activities have been corrected.

<Page>

     (B)    SANITATION AUDITS. SELLER shall make available to BUYER, at BUYER'S
request, the results of any sanitation audits of any facility used by SELLER to
process Product hereunder made by or for SELLER during the term of this
Agreement. SELLER shall notify BUYER immediately of any sanitation audits which
indicate the presence of listeria monocytogenes, salmonella, E. Coli or other
bacteriological presence in a facility used to process Product or in any of its
product during the term of this Agreement. SELLER shall also inform BUYER
promptly but in no event later than forty-eight (48) hours of any inquiry,
investigation, inspection of any facility used by SELLER to process Product made
by any federal, state, or local governmental agency that could have an adverse
effect on the ability of SELLER to perform its obligations under this Agreement.
SELLER shall provide BUYER with a summary of each report related thereto, and
SELLER shall allow BUYER and its representatives access to such reports for
visual review only.

     (C)    NO DUTY TO INSPECT. BUYER shall be under no obligation to undertake
such inspection and BUYER's inspection or failure to inspect the Product or
SELLER'S facilities used to process the Product shall not affect or release
SELLER from any of its obligations provided herein. None of the obligations of
SELLER with respect to the Product shall be affected or released by BUYER's
acceptance of delivery of Product or by any inspection thereof or by payment
therefore.

12.  CONFIDENTIALITY

     (A)    SELLER'S OBLIGATIONS. SELLER shall regard as confidential and
proprietary the terms of this Agreement and all the information communicated to
it by BUYER in connection with this Agreement and clearly identified as
"Confidential and Proprietary" (which information shall at all times be the
property of BUYER). SELLER shall not, without BUYER's prior written consent, at
any time disclose any portion of such information to third parties. SELLER shall
disseminate such information to its employees, attorneys and auditors only on a
"need-to-know" basis.

     Notwithstanding the foregoing, SELLER's obligations pursuant to this
Section 12(A) shall not apply to (i) information that, at the time of
disclosure, is, or after disclosure, becomes part of the public domain cither
than as a consequence of SELLER's breach, (ii) information that was known or
otherwise available to SELLER prior to the disclosure by BUYER or its
subsidiaries and/or affiliates, (iii) information disclosed by a third party
(other than a subsidiary and/or affiliate of BUYER) to SELLER after the
disclosure by BUYER, if such third party's disclosure neither violates any
obligation of such third party to BUYER nor is a consequence of SELLER's breach,
(iv) information that BUYER authorized in writing for release, (v) information
which SELLER can demonstrate was independently developed by SELLER or its
employees without use of or reliance on the confidential information disclosed
by BUYER, or (vi) information required to be disclosed by law or by any
governmental authority.

     (B)    BUYER'S OBLIGATIONS. BUYER shall regard as confidential and
proprietary the terms of this Agreement and information obtained as a result of
BUYER's inspection of SELLER's facilities pursuant to Section 11 hereof, and all
the information communicated to it by SELLER in connection with this Agreement
and clearly identified as "Confidential and Proprietary" (which information
shall at all times by the property of SELLER). BUYER shall not, without SELLER's

<Page>

prior written consent, at any time disclose any portion of such information to
third parties. BUYER shall disseminate such information to its employees only on
a "need-to-know" basis.

     Notwithstanding the foregoing, BUYER's obligations pursuant to this Section
12(B) shall not apply to (i) information that, at the time of disclosure, is, or
after disclosure, becomes part of, the public domain other than as a consequence
of BUYER's breach, (ii) information that was known or otherwise available to
BUYER prior to the disclosure by SELLER or its subsidiaries and/or affiliates,
(iii) information disclosed by a third party (other than a subsidiary or
affiliate of SELLER) to BUYER after the disclosure by SELLER, if such third
party's disclosure neither violates any obligations of such third party to nor
is a consequence of BUYER'S breach or (iv) information that SELLER authorizes in
writing for release, (v) information which BUYER can demonstrate was
independently developed by BUYER or its employees without use of or reliance on
the confidential information disclosed by SELLER, or (vi) information required
to be disclosed by law or any governmental authority.

     (C)    PUBLIC ANNOUNCEMENTS. Both parties agree to obtain prior written
consent of the other party as it relates to any press release or public
announcements with regards to the terms of this Agreement.

13.  INDEMNIFICATION

     (A)    INDEMNIFICATION BY SELLER. Subject to the terms of this Agreement,
SELLER shall indemnify, defend, and hold BUYER, its affiliates and their
respective employees and agents, officers and directors (the "Buyer Indemnified
Parties") harmless from and against any and all demands, claims, actions, suits,
proceedings, judgments, assessments, cost, expenses, losses, damages,
liabilities, fines, and penalties (including, without limitation, reasonable
attorney's fees) (collectively, "Damages") suffered or incurred by any of the
BUYER Indemnified Parties as a result of (i) a breach of any representation,
warranty, covenant or agreement of SELLER hereunder; provided that in no event
shall SELLER have any responsibility to BUYER for any Damages arising because of
any act of SELLER which is in compliance with Section 4(A) or which is in
compliance with written instructions or written requests made by BUYER, and/or
(ii) any act or deed, whether by way of tort or contract, committed or omitted
by SELLER, its employees or agents, in the performance of this Agreement, except
for acts or deeds committed or omitted by SELLER in reliance on representations
and warranties made to SELLER by BUYER under this Agreement, or matters arising
from the negligence or willful misconduct of BUYER.

     (B)    INDEMNIFICATION BY BUYER. BUYER shall indemnify, defend, and hold
SELLER, its subsidiaries and affiliates and their respective officers,
directors, employees and agents (the "Seller Indemnified Parties") harmless from
and against any and all Damages suffered or incurred by any of the SELLER
Indemnified Parties as a result of (i) any breach of any representation,
warranty made by BUYER hereunder, or (ii) any act or deed, whether by way of
tort or contract, Agreement, except for acts or deeds committed or omitted by
BUYER in reliance on representations and warranties made to BUYER by SELLER
under this Agreement, or (iii) the use or sale of the Products by Buyer, whether
used or sold singly or in combination with other products, provided any such
Damages were not caused by SELLER's Defective Product or by SELLER's negligence
or willful misconduct.

<Page>

14.  MISCELLANEOUS

     (A)    INDEPENDENT CONTRACTOR. This Agreement shall not constitute or give
rise to a partnership or joint venture between the parties. All activities by
SELLER under the terms of this Agreement shall be carried on by SELLER as an
independent contractor and not as an agent for or employee of BUYER. No employee
of SELLER shall be deemed to be an employee of BUYER. All activities of BUYER
under the terms of this Agreement shall be carried on by BUYER as an independent
contractor and not as an agent for or employee of SELLER. No employee of BUYER
shall be deemed to be an employee of SELLER.

     (B)    AGREEMENT TO GOVERN. This Agreement (including the Attachments
hereto) sets forth the entire understanding and supersedes all prior and
contemporaneous oral and written agreements between the parties relating to the
subject matter contained herein, and merges all prior and contemporaneous
discussions between them. No party shall be bound by any definition, condition,
representations, warranty, covenant, or provisions other than as expressly
stated in this Agreement including the Attachments hereto or as subsequently
shall be set forth in writing and executed by SELLER and BUYER.

     (C)    SEVERABILITY. The parties expressly agree that it is not the
intention of any party to violate any public policy, statutory, or common laws,
rules, regulations, treaties or decision of any government or agency thereof. If
any provision of this Agreement is judicially or administratively interpreted or
construed as being so in violation, such provision shall be inoperative and the
remainder of this Agreement shall remain binding upon the parties hereto.

     (D)    NOTICES AND OTHER COMMUNICATIONS. All notices, demands, or requests
provided for or permitted to be given pursuant to this Agreement must be in
writing. All notices, demands and requests shall be given by personal delivery,
or transmitted by telecopy, or delivered to Federal Express or other reputable
overnight carrier for next business day delivery, charges billed to or prepaid
by shipper, or deposited in the United States mail, registered or certified with
return receipt requested, proper postage prepaid, addressed as follows:

     IF TO BUYER:

            ACH Food Companies, Inc.
            7171 Goodlett Farms Parkway
            Cordova, TN 38018-3211
            Attn: Rob York
                  Executive Vice President - Oil Products

     IF TO SELLER:

            South Dakota Soybean Processors
            100 Caspian Ave.
            Volga, SD
            Attn: Rodney Christianson
                  Chief Executive Officer

<Page>

     Each notice, demand, or request shall be effective upon personal delivery,
or upon confirmation of receipt of the applicable telecopy, or one (1) business
day after delivery to a reputable overnight carrier in accordance with the
foregoing, or three (3) business days after the date on which the same is
deposited in the United States mail in accordance with the foregoing. Rejection
or other refusal to accept or the inability to deliver because of changed
address of which no notice was given shall not adversely impact the
effectiveness of any such notice, demand or request.

     Any addressee may change its address for notices hereunder by giving
written notice in accordance with this section.

     (E)    COUNTERPARTS. This Agreement may be executed in any number of
counterparts and each counterpart shall constitute an original instrument, but
all such separate counterparts shall constitute one and the same agreement.

     (F)    LAW TO GOVERN. The validity, construction, and enforceability of
this Agreement shall be governed in all respects by the laws of the State of
Tennessee without regard to its conflict of laws rules. Both parties hereby
waive their respective rights to a trial by jury.

     (G)    SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon and
shall inure to the benefit of the parties hereto and their respective permitted
successors and assigns. Except as provided herein, neither this Agreement nor
the rights or obligations of either party hereunder may be assigned except with
the written consent of the other party which shall not be unreasonably withheld.

     (H)    NO THIRD PARTY BENEFICIARIES. Nothing in this Agreement expressed or
implied is intended to confer upon any person, other than the parties hereto and
their successors and permitted assigns, any rights or remedies under or by
reason of this Agreement.

     (I)    PAYMENT IN U.S. DOLLARS. All payments under this Agreement shall be
made in United States dollars.

     (J)    ATTACHMENTS. The Attachments referred to herein, and attached to
this Agreement, are incorporated herein by reference as if fully set forth in
the text hereof.

     (K)    MODIFICATION. The parties to this Agreement may, but only by mutual
written consent executed by the authorized officers of SELLER and BUYER, modify
or supplement this Agreement in such manner as may be mutually agreed upon by
them in writing.

     (L)    EXPENSES. Except as otherwise provided in this Agreement, each party
shall bear its own expenses incident to this Agreement and the transactions
contemplated hereby, including without limitation, all fees of counsel,
accountants, and consultants.

<Page>

     (M)    DAMAGES. Subject to Section 6(D) hereof, neither party shall be
liable to the other party for any special, consequential or exemplary damages
(including lost or anticipated revenues or profits relating to the same) arising
from any claim relating to this Agreement.

     (N)    FORCE MAJEURE. Neither party hereto shall be liable for, or entitled
to terminate this Agreement for a failure to perform or a delay in performing
hereunder for reasons not within such parties reasonable control, including, but
not limited to, acts of God, acts of a public enemy, acts of civil or military
authority, civil disturbance, embargoes, acts of any person engaged in
subversive activity or sabotage, fires, floods, explosions, or other
catastrophies, epidemics, or quarantine restrictions (each, an "Excusable
Cause"). Strikes or other labor stoppages, slowdowns or disputes ("Labor Cause")
are expressly excluded from the definition of Excusable Cause and Labor Cause
shall not excuse SELLER's failure to perform or delay in performing. If SELLER
has not cured any Excusable Cause applicable to it within sixty (60) days, BUYER
may terminate this Agreement without further liability to either party. In no
event shall there be any Excusable Cause for the failure to meet a monetary
obligation. Each party shall use due diligence and all reasonable efforts to
cure any Excusable Cause preventing its performance and to resume performance.

     In the event either party reasonably believes that its performance
hereunder may be delayed, impaired, or prevented by any Excusable Cause, such
party shall (a) promptly notify the other party of the possibility of such
Excusable Cause, and (b) if the notifying party is SELLER, use its commercially
reasonable efforts to assist BUYER in procuring Products from other sources,
provided in either case that such alternative arrangements are reasonably
acceptable to BUYER. Notwithstanding anything in this Agreement to the contrary,
SELLER shall pay, and indemnify and hold BUYER harmless from and against, the
Cost to Cover incurred by BUYER in connection with the procurement of Product
from other sources.

15.  INSURANCE

     SELLER shall maintain, throughout the term of this Agreement, at its
expense from a carrier reasonably satisfactory to BUYER,
commercial/comprehensive general liability insurance in a minimum amount of one
million dollars ($1,000,000) combined single limit, for bodily injury and
property damage. Such insurance shall include product liability and vendors
liability insurance, and contractual liability coverage with respect to the
liability of SELLER under Sections 6(D), 13(A) and 14(N) hereof.

16.  DISPUTE RESOLUTION

     In the event of any dispute or disagreement between BUYER and SELLER as to
the interpretation of any provision of this Agreement (or the performance of
obligations hereunder), the matter, upon written request of either party, shall
be referred to representatives of the parties for decision, each party being
represented by a senior executive officer who has no direct operational
responsibility for the matters contemplated by this Agreement (the
"Representatives"). The Representatives shall promptly meet in a good faith
effort to resolve the dispute. If the Representatives do not agree upon a
decision within thirty (30) calendar days after reference of the matter to them,
each BUYER and SELLER shall be free to exercise the legal remedies available to
it.

<Page>

17.  FAIR MARKET VALUE

     "Fair Market Value" means $1,200,000.

IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be
executed on its behalf by its duly authorized officer on the day and year first
written above.

ACH Food Companies, Inc., a Delaware corporation

By: /s/ ROB YORK
    --------------------------------

Name:   ROB YORK
      ------------------------------

Title:  EXECUTIVE VICE PRESIDENT
       -----------------------------

Date:   JANUARY 15, 2002
      ------------------------------

South Dakota Soybean Processors, a South Dakota co-operative association

By: /s/ RODNEY G. CHRISTIANSON
    --------------------------------

Name:   RODNEY G. CHRISTIANSON
      ------------------------------

Title:  CHIEF EXECUTIVE OFFICER
       -----------------------------

Date:   JANUARY 15, 2002
      ------------------------------

<Page>

                               PURCHASE AGREEMENT

     This PURCHASE AGREEMENT (the "Agreement") is made as of the 15th day of
January, 2002, by and between ACH FOOD COMPANIES, INC., a Delaware Corporation
("ACH"), having its principal place of business at 7171 Goodlett Farms Parkway,
Cordova, Tennessee 38018, and SOUTH DAKOTA SOYBEAN PROCESSORS, a South Dakota
co-operative association, having its principal place of business at 100 Caspian
Avenue, Volga, South Dakota 57071 ("SDSP").

                                    RECITALS

     A.     ACH, as Buyer, and SDSP, as Seller, have entered into that certain
Bulk Refined Bleached Soybean Oil Supply Agreement effective January 15, 2002
(the "Supply Agreement"), pursuant to which SDSP shall sell to ACH, and ACH
shall purchase from SDSP, refined, bleached ("RB") soybean oils.

     B.     SDSP intends to fulfill its obligation under the Supply Agreement by
producing refined and bleached RB soybean oils in a facility to be constructed
and owned by SDSP in Volga, South Dakota (the "South Dakota Facility").

     C.     ACH owns certain equipment used in producing and refining of RB
soybean oils as described in Exhibit A attached hereto and made a part hereof
(the "Equipment"), located at 525 West First Avenue, Columbus, Ohio (the "Ohio
Facility"). SDSP desires to purchase the Equipment from ACH, to move the
Equipment from the Ohio Facility and install the Equipment in the South Dakota
Facility.

     D.     ACH desires to sell the Equipment to SDSP, and SDSP desires to
purchase the Equipment from ACH, subject to the terms and conditions of this
Agreement.

                                   AGREEMENTS

     In consideration of Recitals set forth above, which by this reference are
made a part of this Agreement, the execution and delivery of the Supply
Agreement, the mutual covenants and agreements set forth below, and other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, ACH and SDSP agree as follows:

     1.     SALE OF EQUIPMENT. ACH does hereby sell, assign, transfer and set
over the Equipment to SDSP and SDSP does hereby purchase the Equipment from ACH.
This Agreement shall constitute a bill of sale for the Equipment.

     2.     REPRESENTATIONS AND WARRANTIES OF ACH. ACH hereby represents and
warrants to SDSP that (a) ACH is the absolute owner of the Equipment, (b) the
Equipment is free and clear of all liens, charges and encumbrances, and (c) ACH
has full right, power and authority to sell the Equipment to SDSP. SDSP
ACKNOWLEDGES THAT ACH HAS MADE NO OTHER REPRESENTATION OR WARRANTIES OF ANY
KIND, EXPRESSED OR IMPLIED, AS TO ANY MATTER WHATSOEVER, INCLUDING, WITHOUT
LIMITATION, THE DESIGN,

                                        1
<Page>

PERFORMANCE, OR CONDITION OF THE EQUIPMENT, ITS MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE. ACH SHALL HAVE NO LIABILITY TO SDSP FOR ANY CLAIM, LOSS OR
DAMAGE CAUSED BY OR ARISING IN ANY WAY IN CONNECTION WITH THE EQUIPMENT, NOR
SHALL ACH BE LIABLE FOR CLAIMS ARISING OF OR IN CONNECTION WITH ANY DEFICIENCY
OR DEFECT IN THE EQUIPMENT, THE USE OR PERFORMANCE OF THE EQUIPMENT, OR ANY LOSS
OF BUSINESS OR OTHER CONSEQUENTIAL LOSS OR DAMAGE WHETHER OR NOT RESULTING FROM
ANY OF THE FOREGOING.

     3.     ADDITIONAL PURCHASE PRICE. ACH and SDSP acknowledge and agree that
under the provisions of the Supply Agreement, in certain circumstances SDSP may
be obligated to pay additional amounts to ACH as and for the purchase price of
the Equipment (the "Additional Purchase Price").

     4.     SALE OF EQUIPMENT. During the Term (as defined in the Supply
Agreement) SDSP shall not sell the Equipment to any party, or relocate the
Equipment to another location, without the prior written consent of ACH, which
consent ACH shall not unreasonably withhold.

     5.     REMOVAL AND USE OF EQUIPMENT.

            a.     SDSP shall be entitled, or required by ACH, to remove the
     Equipment from the Ohio Facility at such time and subject to the conditions
     as provided in the Supply Agreement. SDSP shall, at SDSP's sole cost and
     expense, remove the Equipment from the Ohio Facility. SDSP will take
     reasonable steps for the removal of the equipment from the Ohio Facility to
     avoid undue damage.

            b.     Following removal of the Equipment by SDSP, SDSP shall
     install the Equipment in the South Dakota Facility. SDSP shall pay and
     hereby assumes all transportation, installation, storage, rigging, and
     in-transit insurance charts with respect to the Equipment.

     6.     MAINTENANCE AND REPAIR. During the Term, SDSP shall, at its sole
expense, maintain the Equipment in good operating order, repair, condition and
appearance and make all necessary repairs to protect the Equipment from
deterioration, other than normal wear and tear.

     7.     INDEMNITY. SDSP hereby agrees to assume liability for, and does
hereby agree to indemnify, protect and hold ACH harmless from and against any
and all liabilities, obligations, losses, damages, penalties, claims, actions,
suits, costs, or expenses (including legal fees and expenses), arising out of
the use of the Equipment following its removal from the Ohio Facility.

     ACH hereby agrees to assume 1iability for, and does hereby agree to
indemnify, protect and hold SDSP harmless from and against any and all
liabilities, obligations, losses, damages, penalties, claims, actions, suits,
costs, or expenses (including legal fees and expenses), arising from personal
injury or death caused by the Equipment prior to its removal from the Ohio
Facility.

                                        2
<Page>

     8.     RISK OF LOSS INSURANCE. SDSP hereby assumes and shall bear the
entire risk of loss and damage of the Equipment from any and every cause
whatsoever as of the date the Equipment is delivered to SDSP. SDSP has obtained,
and shall maintain in full force and effect during the Term, a casualty
insurance policy insuring the Equipment, with a deductible in the amount of
$250,000 or such other amount as SDSP may reasonably require. During the Term,
SDSP shall deliver to ACH proof of the existence and/or renewal of such policy
of insurance.

     9.     DEFAULT REMEDIES. Upon a default by SDSP under this Agreement, ACH
shall have such remedies as provided to ACH in the case of a default by SDSP
under the Supply Agreement

     10.    MISCELLANEOUS.

            a.     This Agreement has been executed and delivered in the State
     of Tennessee and shall be governed and construed for all purposes under and
     in accordance with the laws of such state.

            b.     ACH and SDSP acknowledge that there are no agreements or
     understandings, written or oral, between ACH and SDSP with respect to the
     Equipment, other than as set forth herein and in the Supply Agreement.

            c.     This Agreement shall be binding upon and inure to the benefit
     of the parties hereto and their respective successors and assigns (as may
     be permitted hereunder).

            d.     All notices, consents or requests desired or required to be
     given hereunder shall be in writing and shall be given in the manner
     provided in the Supply Agreement.

     IN WITNESS WHEREOF, the parties have executed this Purchase Agreement on
the date first written above.

SDSP:                                        ACH:

SOUTH DAKOTA SOYBEAN                         ACH FOOD COMPANIES, INC.,
PROCESSORS, a South Dakota                   a Delaware corporation
co-operative association

By: /s/ RODNEY G. CHRISTIANSON               By: /s/ ROB YORK
    --------------------------------             -----------------------------
Title:  CHIEF EXECUTIVE OFFICER              Title:  EXECUTIVE VICE PRESIDENT
       -----------------------------               ---------------------------

                                        3

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