Document:

<PAGE>

                                                                     Exhibit 4.4

                                                                       EXHIBIT D

                                    GUARANTEE AND COLLATERAL AGREEMENT dated
                           as of October 11, 2001, among LAND O'LAKES,
                           INC., the SUBSIDIARY PARTIES NAMED HEREIN and
                           THE CHASE MANHATTAN BANK, as Collateral
                           Agent.

                  Reference is made to (i) the Credit Agreement dated as of
October 11, 2001, (as amended, supplemented or otherwise modified from time to
time, the "Term Credit Agreement"), among Land O'Lakes, Inc. (the "Borrower"),
the Lenders party thereto and The Chase Manhattan Bank, as Administrative Agent
and Collateral Agent and (ii) the Amended and Restated Five-Year Credit
Agreement dated as of June 28, 1999, as amended and restated as of October 11,
2001 (as amended, supplemented or otherwise modified from time to time, the
"Revolving Credit Agreement" together with the Term Credit Agreement, the
"Credit Agreements"), among the Borrower, the Lenders party thereto, The Chase
Manhattan Bank as Administrative Agent and Collateral Agent and CoBank, ACB as
Co-Administrative Agent. The Lenders have agreed to extend credit to the
Borrower subject to the terms and conditions set forth in the Credit Agreements.
The obligations of the Lenders to extend such credit are conditioned upon, among
other things, the execution and delivery of this Agreement. The Subsidiary
Parties are affiliates of the Borrower, will derive substantial benefits from
the extension of credit to the Borrower pursuant to the Credit Agreements and
are willing to execute and deliver this Agreement in order to induce the Lenders
to extend such credit. Accordingly, the parties hereto agree as follows:

                                    ARTICLE I

                                   Definitions

                  SECTION 1.01. Credit Agreements.

                  (a) Capitalized terms used in this Agreement and not otherwise
defined herein have the meanings specified in the Credit Agreements. All terms
defined in the New York UCC (as defined herein) and not defined in this
Agreement have the meanings specified therein; the term "instrument" shall have
the meaning specified in Article 9 of the New York UCC.

                  (b) The rules of construction specified in Article I of the
Credit Agreements also apply to this Agreement.

<PAGE>

                                                                               2

                  SECTION 1.02. Other Defined Terms. As used in this Agreement,
the following terms have the meanings specified below:

                  "Account Debtor" means any Person who is or who may become
obligated to any Grantor under, with respect to or on account of an Account.

                  "Accounts" means all Accounts (as defined in the New York
Uniform Commercial Code) and Account Assets with respect to such Accounts,
including those related to the dairy businesses of the Company and the
Restricted Subsidiaries and payable to such parties, including, but not limited
to, accounts receivable generated from the marketing and sale of milk, butter,
cheese, cream products, dairy and non-dairy spreads, whey, non-fat dry milk,
cocoa, and other dairy or dairy related products sold for consumer use,
licensing fees relating to dairy products and dairy related services, and the
proceeds thereof, but specifically excluding the CoBank Accounts and the Account
Assets with respect to such CoBank Accounts.

                  "CoBank Accounts" means (i) accounts related to the feed
businesses of Farmland Feed and PMI, their subsidiaries and their respective
successors, including, but not limited to, accounts receivable generated from
the sale of animal feed and feed ingredients, soybean meal, premixes, non-grain
protein ingredients, grains, vitamins, minerals, branded feed products, complete
feed products, milk replacer products, feed additives, animal health products,
farm supply products, toll milling services and other feed related services and
the proceeds thereof, (ii) accounts related to the seed business of the Company
including, but not limited to, accounts receivable generated from the sale of
seed, licensing fees and seed related services and the proceeds thereof, (iii)
accounts related to the swine businesses of the Company, Farmland Feed and PMI,
its subsidiaries and their respective successors, including, but not limited to,
accounts receivable generated from the sale of swine and swine related services
and the proceeds thereof, and (iv) all Account Assets related to the foregoing;
provided, however, that "CoBank Accounts" related to the swine businesses of the
Company and Farmland Feed shall not include any such right to payment where
payments have been sent to a lockbox or lockbox account other than those
specified in the guarantee and collateral agreement related to the Credit
Agreement.

                  "Collateral" has the meaning assigned to such term in Section
4.01.

<PAGE>

                                                                               3

                  "Copyright License" means any written agreement, now or
hereafter in effect, granting any right to any third party under any copyright
now or hereafter owned by any Grantor or that such Grantor otherwise has the
right to license, or granting any right to any Grantor under any copyright now
or hereafter owned by any third party, and all rights of such Grantor under any
such agreement.

                  "Copyrights" means all of the following now owned or hereafter
acquired by any Grantor: (a) all copyright rights in any work subject to the
copyright laws of the United States or any other country, whether as author,
assignee, transferee or otherwise, and (b) all registrations and applications
for registration of any such copyright in the United States or any other
country, including registrations, recordings, supplemental registrations and
pending applications for registration in the United States Copyright Office,
including those listed on Schedule III.

                  "Credit Agreements" has the meaning assigned to such term in
the preliminary statement of this Agreement.

                  "Equipment" means all Equipment (as defined in the New York
UCC), but specifically excluding the following: (x) the (i) Niro Dryer (Asset
No. 216376, (ii) Niro Dryer (Asset No. 216392), (iii) Niro Dryer (Asset No.
216394), (iv) APV Evaporator (Asset No. 216391), (v) APV Evaporator (Asset No.
216435), (vi) APV Evaporator (Asset No. 216436), (vii) Simmon butter churn
(Asset No. 216461), (viii) Two Rodgers Dryers - Carlisle Expansion (Asset No.
224922), and (ix) GEA Evaporator - Carlisle Expansion (Asset No. 226443) owned
by the Borrower and currently located at its Carlisle, Pennsylvania plant, (y)
any improvements, model conversions, additions, accessions, attachments,
replacements and substitutions of, for and to any of the foregoing, and (z) any
proceeds (as defined by the Pennsylvania Uniform Commercial Code) of the
foregoing.

                  "Equity Interests" means shares of capital stock, interests in
a cooperative corporation, partnership interests, membership interests in a
limited liability company, beneficial interests in a trust (other than any trust
subject to ERISA or non-qualified benefit plans) or other equity ownership
interests in a Person.

                  "Federal Securities Laws" has the meaning assigned to such
term in Section 5.04.

                  "General Intangibles" means all choses in action and causes of
action and all other intangible personal property of any Grantor of every kind
and nature (other than

<PAGE>

                                                                               4

Accounts) now owned or hereafter acquired by any Grantor, including corporate or
other business records, indemnification claims, contract rights (including
rights under leases, whether entered into as lessor or lessee, Hedging
Agreements and other agreements), Intellectual Property, goodwill,
registrations, franchises, tax refund claims and any letter of credit,
guarantee, claim, security interest or other security held by or granted to any
Grantor to secure payment by an Account Debtor of any of the Accounts.

                  "Grantors" means the Borrower and the Subsidiary Parties.

                  "Guarantors" means the Subsidiary Parties.

                  "Intellectual Property" means all intellectual and similar
property of any Grantor of every kind and nature now owned or hereafter acquired
by any Grantor, including inventions, designs, Patents, Copyrights, Licenses,
Trademarks, trade secrets, confidential or proprietary technical and business
information, know-how, show-how or other data or information, software and
databases and all embodiments or fixations thereof and related documentation,
registrations and franchises, and all additions, improvements and accessions to,
and books and records describing or used in connection with, any of the
foregoing.

                  "License" means any Patent License, Trademark License,
Copyright License or other license or sublicense to which any Grantor is a
party, including those listed on Schedule III.

                  "Loan Documents" means this Agreement, the Term Credit
Agreement, the Revolving Credit Agreement and the other Security Documents.

                  "Loans" means the loans made by the Lenders to the Borrower
pursuant to (i) the Term Credit Agreement and (ii) the Revolving Credit
Agreement.

                  "New York UCC" means the Uniform Commercial Code as from time
to time in effect in the State of New York.

                  "Non-Pledged Equity Interests" means Equity Interests owned by
any Grantor which do not constitute Pledged Collateral.

                  "Obligations" means (a) the due and punctual payment by the
Borrower of (i) the principal of and interest (including interest accruing
during the pendency of any

<PAGE>

                                                                               5

bankruptcy, insolvency, receivership or other similar proceeding, regardless of
whether allowed or allowable in such proceeding) on the Loans when and as due,
whether at maturity, by acceleration, upon one or more dates set for prepayment
or otherwise, (ii) each payment required to be made by the Borrower under the
Revolving Credit Agreement in respect of any Letter of Credit, when and as due,
including payments in respect of reimbursement of disbursements, interest
thereon and obligations to provide cash collateral, and (iii) all other monetary
obligations of the Borrower to any of the Secured Parties under the Credit
Agreements and each of the other Loan Documents, including fees, costs, expenses
and indemnities, whether primary, secondary, direct, contingent, fixed or
otherwise (including monetary obligations incurred during the pendency of any
bankruptcy, insolvency, receivership or other similar proceeding, regardless of
whether allowed or allowable in such proceeding), (b) the due and punctual
performance of all other obligations of the Borrower under or pursuant to the
Credit Agreements and each of the other Loan Documents, (c) the due and punctual
payment and performance of all the obligations of each other Loan Party under or
pursuant to this Agreement and each of the other Loan Documents and (d) the due
and punctual payment and performance of all obligations of each Loan Party under
each Hedging Agreement that (i) is in effect on the Effective Date with a
counterparty that is a Lender or an Affiliate of a Lender as of the Effective
Date or (ii) is entered into after the Effective Date with any counterparty that
is a Lender or an Affiliate of a Lender at the time such Hedging Agreement is
entered into.

                  "Patent License" means any written agreement, now or hereafter
in effect, granting to any third party any right to make, use or sell any
invention on which a patent, now or hereafter owned by any Grantor or that any
Grantor otherwise has the right to license, is in existence, or granting to any
Grantor any right to make, use or sell any invention on which a patent, now or
hereafter owned by any third party, is in existence, and all rights of any
Grantor under any such agreement.

                  "Patents" means all of the following now owned or hereafter
acquired by any Grantor: (a) all letters patent of the United States or any
other country, all registrations and recordings thereof, and all applications
for letters patent of the United States or any other country, including
registrations, recordings and pending applications in the United States Patent
and Trademark Office or any similar offices in any other country, including
those listed on Schedule III, and (b) all reissues, continuations,

<PAGE>

                                                                               6

divisions, continuations-in-part, renewals or extensions thereof, and the
inventions disclosed or claimed therein, including the right to make, use and/or
sell the inventions disclosed or claimed therein.

                  "Pledged Collateral" has the meaning assigned to such term in
Section 3.01.

                  "Pledged Debt Securities" has the meaning assigned to such
term in Section 3.01.

                  "Pledged Securities" means any promissory notes, stock
certificates or other securities now or hereafter included in the Pledged
Collateral, including all certificates, instruments or other documents
representing or evidencing any Pledged Collateral.

                  "Pledged Stock" has the meaning assigned to such term in
Section 3.01.

                  "Pledgors" means the Borrower and the Subsidiary Parties.

                  "Perfection Certificate" means a certificate substantially in
the form of Annex 2, completed and supplemented with the schedules and
attachments contemplated thereby, and duly executed by a Financial Officer and
the chief legal officer of the Borrower.

                  "Proceeds" has the meaning specified in Section 9-102 of the
New York UCC.

                  "Revolving Credit Agreement" has the meaning assigned to such
term in the preliminary statement of this Agreement.

                  "Secured Parties" means (a) the Lenders, (b) the Collateral
Agent, (c) the Issuing Bank, (d) each counterparty to any Hedging Agreement with
a Loan Party that either (i) is in effect on the Effective Date if such
counterparty is a Lender or an Affiliate of a Lender as of the Effective Date or
(ii) is entered into after the Effective Date if such counterparty is a Lender
or an Affiliate of a Lender at the time such Hedging Agreement is entered into,
(e) the beneficiaries of each indemnification obligation undertaken by any
Grantor or Pledgor under any Loan Document and (f) the successors and assigns of
each of the foregoing.

                  "Security Interest" has the meaning assigned to such term in
Section 4.01.

<PAGE>

                                                                               7

                  "Seed" means crop seed (including, but not limited to, seed
for soybeans, corn, alfalfa, forage and turf grasses).

                  "Subsidiary Parties" means (a) the Subsidiary Loan Parties
identified on Schedule I and (b) each other Subsidiary that becomes a party to
this Agreement as contemplated by Section 7.16.

                  "Term Credit Agreement" has the meaning assigned to such term
in the preliminary statement of this Agreement.

                  "Trademark License" means any written agreement, now or
hereafter in effect, granting to any third party any right to use any trademark
now or hereafter owned by any Grantor or that any Grantor otherwise has the
right to license, or granting to any Grantor any right to use any trademark now
or hereafter owned by any third party, and all rights of any Grantor under any
such agreement.

                  "Trademarks" means all of the following now owned or hereafter
acquired by any Grantor: (a) all trademarks, service marks, trade names,
corporate names, company names, business names, fictitious business names, trade
styles, trade dress, logos, other source or business identifiers, designs and
general intangibles of like nature, now existing or hereafter adopted or
acquired, all registrations and recordings thereof, and all registration and
recording applications filed in connection therewith, including registrations
and registration applications in the United States Patent and Trademark Office
or any similar offices in any State of the United States or any other country or
any political subdivision thereof, and all extensions or renewals thereof,
including those listed on Schedule II, (b) all goodwill associated therewith or
symbolized thereby and (c) all other assets, rights and interests that uniquely
reflect or embody such goodwill.

                                   ARTICLE II

                                    Guarantee

                  SECTION 2.01. Guarantee. Each Guarantor unconditionally
guarantees, jointly with the other Guarantors and severally, as a primary
obligor and not merely as a surety, the due and punctual payment and performance
of the Obligations. Each of the Guarantors further agrees that the Obligations
may be extended or renewed, in whole or in part, without notice to or further
assent from it, and that it will remain bound upon its

<PAGE>

                                                                               8

guarantee notwithstanding any extension or renewal of any Obligation. Each of
the Guarantors waives presentment to, demand of payment from and protest to the
Borrower or any other Loan Party of any of the Obligations, and also waives
notice of acceptance of its guarantee and notice of protest for nonpayment.

                  SECTION 2.02. Guarantee of Payment. Each of the Guarantors
further agrees that its guarantee hereunder constitutes a guarantee of payment
when due and not of collection, and waives any right to require that any resort
be had by the Collateral Agent or any other Secured Party to any security held
for the payment of the Obligations or to any balance of any deposit account or
credit on the books of the Collateral Agent or any other Secured Party in favor
of the Borrower or any other Person.

                  SECTION 2.03. No Limitations, Etc. (a) Except for termination
of a Guarantor's obligations hereunder as expressly provided in Section 7.15,
the obligations of each Guarantor hereunder shall not be subject to any
reduction, limitation, impairment or termination for any reason, including any
claim of waiver, release, surrender, alteration or compromise, and shall not be
subject to any defense or setoff, counterclaim, recoupment or termination
whatsoever by reason of the invalidity, illegality or unenforceability of the
Obligations or otherwise. Without limiting the generality of the foregoing, the
obligations of each Guarantor hereunder shall not be discharged or impaired or
otherwise affected by (i) the failure of the Collateral Agent or any other
Secured Party to assert any claim or demand or to enforce any right or remedy
under the provisions of any Loan Document or otherwise; (ii) any rescission,
waiver, amendment or modification of, or any release from any of the terms or
provisions of, any Loan Document or any other agreement, including with respect
to any other Guarantor under this Agreement; (iii) the release of any security
held by the Collateral Agent or any other Secured Party for the Obligations or
any of them; (iv) any default, failure or delay, willful or otherwise, in the
performance of the Obligations; or (v) any other act or omission that may or
might in any manner or to any extent vary the risk of any Guarantor or otherwise
operate as a discharge of any Guarantor as a matter of law or equity (other than
the indefeasible payment in full in cash of all the Obligations). Each Guarantor
expressly authorizes the Secured Parties to take and hold security for the
payment and performance of the Obligations and this Agreement, to exchange,
waive or release any or all such security (with or without consideration), to
enforce or apply such security and direct the order and manner of any sale
thereof in their

<PAGE>

                                                                               9

sole discretion or to release or substitute any one or more other guarantors or
obligors upon or in respect of the Obligations, all without affecting the
obligations of any Guarantor hereunder.

                  (b) To the fullest extent permitted by applicable law, each
Guarantor waives any defense based on or arising out of any defense of the
Borrower or any other Loan Party or the unenforceability of the Obligations or
any part thereof from any cause, or the cessation from any cause of the
liability of the Borrower or any other Loan Party, other than the indefeasible
payment in full in cash of all the Obligations. The Collateral Agent and the
other Secured Parties may, at their election, foreclose on any security held by
one or more of them by one or more judicial or nonjudicial sales, accept an
assignment of any such security in lieu of foreclosure, compromise or adjust any
part of the Obligations, make any other accommodation with the Borrower or any
other Loan Party or exercise any other right or remedy available to them against
the Borrower or any other Loan Party, without affecting or impairing in any way
the liability of any Guarantor hereunder except to the extent the Obligations
have been fully and indefeasibly paid in full in cash. To the fullest extent
permitted by applicable law, each Guarantor waives any defense arising out of
any such election even though such election operates, pursuant to applicable
law, to impair or to extinguish any right of reimbursement or subrogation or
other right or remedy of such Guarantor against the Borrower or any other Loan
Party, as the case may be, or any security.

                  SECTION 2.04. Reinstatement. Each of the Guarantors agrees
that its guarantee hereunder shall continue to be effective or be reinstated, as
the case may be, if at any time payment, or any part thereof, of any Obligation
is rescinded or must otherwise be restored by the Collateral Agent or any other
Secured Party upon the bankruptcy or reorganization of the Borrower, any other
Loan Party or otherwise.

                  SECTION 2.05. Agreement To Pay; Subrogation. In furtherance of
the foregoing and not in limitation of any other right that the Collateral Agent
or any other Secured Party has at law or in equity against any Guarantor by
virtue hereof, upon the failure of the Borrower or any other Loan Party to pay
any Obligation when and as the same shall become due, whether at maturity, by
acceleration, after notice of prepayment or otherwise, each Guarantor hereby
promises to and will forthwith pay, or cause to be paid, to the Collateral Agent
for distribution to the applicable Secured Parties in cash the amount of such
unpaid

<PAGE>

                                                                              10

Obligation. Upon payment by any Guarantor of any sums to the Collateral Agent as
provided above, all rights of such Guarantor against the Borrower or any other
Guarantor arising as a result thereof by way of right of subrogation,
contribution, reimbursement, indemnity or otherwise shall in all respects be
subject to Article VI.

                  SECTION 2.06. Information. Each Guarantor assumes all
responsibility for being and keeping itself informed of the Borrower's and each
other Loan Party's financial condition and assets, and of all other
circumstances bearing upon the risk of nonpayment of the Obligations and the
nature, scope and extent of the risks that such Guarantor assumes and incurs
hereunder, and agrees that none of the Collateral Agent or the other Secured
Parties will have any duty to advise such Guarantor of information known to it
or any of them regarding such circumstances or risks.

                                   ARTICLE III

                              Pledge of Securities

                  SECTION 3.01. Pledge. As security for the payment or
performance, as the case may be, in full of the Obligations, each Pledgor hereby
assigns and pledges to the Collateral Agent, its successors and assigns, for the
benefit of the Secured Parties, and hereby grants to the Collateral Agent, its
successors and assigns, for the benefit of the Secured Parties, a security
interest in, all of such Pledgor's right, title and interest in, to and under
(a) the shares of capital stock and other Equity Interests owned by it and
listed on Schedule II and any other Equity Interests of the Borrower or any
Restricted Subsidiary obtained in the future by such Pledgor and the
certificates representing all such Equity Interests (the "Pledged Stock");
provided that the Pledged Stock shall not include more than 65% of the issued
and outstanding voting Equity Interests of any Foreign Restricted Subsidiary
and, provided further that, the parties understand and agree that Schedule II
has been prepared to give effect to (i) the contribution by or lending by the
Borrower to Holding Co. II of cash sufficient to consummate the merger described
in clause (ii) below, and (ii) the acquisition by Holding Co. II of all the
issued and outstanding equity interests of PMI, for cash in the approximate
amount of $243,400,000 effected through a merger of a newly formed Wholly Owned
Subsidiary of Holding Co,. II with and into PMI in accordance with the terms of
the Acquisition Documents, but does not give effect to (i) the conversion of PMI
and certain of its subsidiaries into

<PAGE>

                                                                              11

limited liability companies or (ii) the contribution by Holding Co. II of its
100% membership interest in the converted PMI to Farmland Feed in exchange for
the membership interest in Farmland Feed (provided, however, immediately upon
any such conversion of corporate form and contribution by Holding Co. II
referred to in this paragraph, the Borrower shall cause each respective entity
to pledge and deliver certificated interests in all limited liability
companies); (b)(i) the debt securities listed opposite the name of such Pledgor
on Schedule II, (ii) any debt securities in the future issued to such Pledgor
and (iii) the promissory notes and any other instruments, if any, evidencing
such debt securities (the "Pledged Debt Securities"); (c) all other property
that may be delivered to and held by the Collateral Agent pursuant to the terms
of this Section 3.01; (d) subject to Section 3.05, all payments of principal or
interest, dividends, cash, instruments and other property from time to time
received, receivable or otherwise distributed in respect of, in exchange for or
upon the conversion of, and all other Proceeds received in respect of, the
securities referred to in clauses (a) and (b) above; (e) subject to Section
3.05, all rights and privileges of such Pledgor with respect to the securities
and other property referred to in clauses (a), (b), (c) and (d) above; and (f)
all Proceeds of any of the foregoing (the items referred to in clauses (a)
through (f) above being collectively referred to as the "Pledged Collateral").

                  TO HAVE AND TO HOLD the Pledged Collateral, together with all
right, title, interest, powers, privileges and preferences pertaining or
incidental thereto, unto the Collateral Agent, its successors and assigns, for
the ratable benefit of the Secured Parties, forever; subject, however, to the
terms, covenants and conditions hereinafter set forth.

                  SECTION 3.02. Delivery of the Pledged Collateral. (a) Each
Pledgor agrees promptly to deliver or cause to be delivered to the Collateral
Agent any and all Pledged Securities.

                  (b) Each Pledgor will cause any Indebtedness for borrowed
money owed to such Pledgor by any Person to be evidenced by a duly executed
promissory note that is pledged and delivered to the Collateral Agent pursuant
to the terms hereof; provided that no promissory note shall be necessary in the
case of Indebtedness owing by the Borrower to any Restricted Subsidiary or by
any Restricted Subsidiary to any other Restricted Subsidiary or to the Borrower
so long as such Indebtedness, if ever represented by a promissory note, is
pledged pursuant to this Agreement. Notwithstanding the

<PAGE>

                                                                              12

foregoing, all Indebtedness of Subsidiaries (other than Restricted Subsidiaries)
and third parties that is owing to the Borrower or any Restricted Subsidiary
shall be pledged pursuant to this Agreement and the Collateral Agent shall have
received all such promissory notes, if any, together with instruments of
transfer with respect thereto endorsed in blank within ten days after the
Effective Date; provided, that if after ten days following the Effective Date, a
promissory note which evidences such Indebtedness is created or found, such
promissory note will be pledged to the Collateral Agent as set forth in this
paragraph.

                  (c) Upon delivery to the Collateral Agent, (i) any Pledged
Securities shall be accompanied by stock powers duly executed in blank or other
instruments of transfer satisfactory to the Collateral Agent and by such other
instruments and documents as the Collateral Agent may reasonably request and
(ii) all other property comprising part of the Pledged Collateral shall be
accompanied by proper instruments of assignment duly executed by the applicable
Pledgor and such other instruments or documents as the Collateral Agent may
reasonably request. Each delivery of Pledged Securities shall be accompanied by
a schedule describing the securities, which schedule shall be attached hereto as
Schedule II and made a part hereof; provided that failure to attach any such
schedule hereto shall not affect the validity of such pledge of such Pledged
Securities. Each schedule so delivered shall supplement any prior schedules so
delivered.

                  SECTION 3.03. Representations, Warranties and Covenants. The
Pledgors jointly and severally represent, warrant and covenant to and with the
Collateral Agent, for the benefit of the Secured Parties, that:

                  (a) Schedule II correctly sets forth the percentage of the
         issued and outstanding shares of each class of the capital stock of the
         issuer thereof represented by such Pledged Stock;

                  (b) the Pledged Stock and Pledged Debt Securities have been
         duly and validly authorized and issued by the issuers thereof and (i)
         in the case of Pledged Stock, are fully paid and nonassessable and (ii)
         in the case of Pledged Debt Securities, are legal, valid and binding
         obligations of the issuers thereof;

                  (c) except for the security interests granted hereunder, each
         of the Pledgors (i) is and will continue to be the direct owner,
         beneficially and of record, of the Pledged Securities indicated on
         Schedule

<PAGE>

                                                                              13

         II as owned by such Pledgor, (ii) holds the same free and clear of all
         Liens, (iii) will make no assignment, pledge, hypothecation or transfer
         of, or create or permit to exist any security interest in or other Lien
         on, the Pledged Collateral, other than pursuant hereto, and (iv)
         subject to Section 3.05, will cause any and all Pledged Collateral,
         whether for value paid by the Pledgor or otherwise, to be forthwith
         deposited with the Collateral Agent and pledged or assigned hereunder;
         provided that nothing herein shall prohibit a sale or other disposition
         of the Pledged Securities permitted by the Credit Agreements;

                  (d) except for restrictions and limitations imposed by the
         Loan Documents or securities laws generally or Section 11.1 of the
         Farmland Feed Operating Agreement, the Pledged Collateral is and will
         continue to be freely transferable and assignable, and none of the
         Pledged Collateral is or will be subject to any option, right of first
         refusal, shareholders agreement, charter or by-law provisions or
         contractual restriction of any nature that might prohibit, impair,
         delay or otherwise affect the pledge of such Pledged Collateral
         hereunder, the sale or disposition thereof pursuant hereto or the
         exercise by the Collateral Agent of rights and remedies hereunder;

                  (e) each of the Pledgors (i) has the power and authority to
         pledge the Pledged Collateral pledged by it hereunder in the manner
         hereby done or contemplated and (ii) will defend its title or interest
         thereto or therein against any and all Liens (other than the Lien
         created by this Agreement), however arising, of all Persons whomsoever;

                  (f) no consent or approval of any Governmental Authority, any
         securities exchange or any other Person was or is necessary to the
         validity of the pledge effected hereby (other than such as have been
         obtained and are in full force and effect);

                  (g) by virtue of the execution and delivery by the Pledgors of
         this Agreement, when any Pledged Securities are delivered to the
         Collateral Agent in accordance with this Agreement, the Collateral
         Agent will obtain a legal, valid and perfected first priority lien upon
         and security interest in such Pledged Securities as security for the
         payment and performance of the Obligations; and

                  (h) the pledge effected hereby is effective to

<PAGE>

                                                                              14

         vest in the Collateral Agent, for the benefit of the Secured Parties,
         the rights of the Collateral Agent in the Pledged Collateral as set
         forth herein.

                  SECTION 3.04. Registration in Nominee Name; Denominations. The
Collateral Agent, on behalf of the Secured Parties, shall have the right (in its
sole and absolute discretion) to hold the Pledged Securities in its name as
agent for the Lenders, the name of its nominee (as pledgee or as sub-agent) or
the name of the applicable Pledgor, endorsed or assigned in blank or in favor of
the Collateral Agent. Each Pledgor will promptly give to the Collateral Agent
copies of any notices or other communications received by it with respect to
Pledged Securities registered in the name of such Pledgor. The Collateral Agent
shall at all times have the right to exchange the certificates representing
Pledged Securities for certificates of smaller or larger denominations for any
purpose consistent with this Agreement.

                  SECTION 3.05. Voting Rights; Dividends and Interest, etc. (a)
Unless and until an Event of Default shall have occurred and be continuing and
the Collateral Agent shall have notified the Pledgors that their rights under
this Section are being suspended:

                  (i) Each Pledgor shall be entitled to exercise any and all
         voting and/or other consensual rights and powers inuring to an owner of
         Pledged Securities or any part thereof for any purpose consistent with
         the terms of this Agreement, the Credit Agreements and the other Loan
         Documents; provided that such rights and powers shall not be exercised
         in any manner that could materially and adversely affect the rights
         inuring to a holder of any Pledged Securities or the rights and
         remedies of any of the Collateral Agent or the other Secured Parties
         under this Agreement or the Credit Agreements or any other Loan
         Document or the ability of the Secured Parties to exercise the same.

                  (ii) The Collateral Agent shall execute and deliver to each
         Pledgor, or cause to be executed and delivered to such Pledgor, all
         such proxies, powers of attorney and other instruments as such Pledgor
         may reasonably request for the purpose of enabling such Pledgor to
         exercise the voting and/or consensual rights and powers it is entitled
         to exercise pursuant to subparagraph (i) above.

                  (iii)  Each Pledgor shall be entitled to receive and
         retain any and all dividends, interest, principal and

<PAGE>

                                                                              15

         other distributions paid on or distributed in respect of the Pledged
         Securities to the extent and only to the extent that such dividends,
         interest, principal and other distributions are permitted by, and
         otherwise paid or distributed in accordance with, the terms and
         conditions of the Credit Agreements, the other Loan Documents and
         applicable laws; provided that any noncash dividends, interest,
         principal or other distributions that would constitute Pledged Stock or
         Pledged Debt Securities, whether resulting from a subdivision,
         combination or reclassification of the outstanding capital stock of the
         issuer of any Pledged Securities or received in exchange for Pledged
         Securities or any part thereof, or in redemption thereof, or as a
         result of any merger, consolidation, acquisition or other exchange of
         assets to which such issuer may be a party or otherwise, shall be and
         become part of the Pledged Collateral, and, if received by any Pledgor,
         shall not be commingled by such Pledgor with any of its other funds or
         property but shall be held separate and apart therefrom, shall be held
         in trust for the benefit of the Collateral Agent and shall be forthwith
         delivered to the Collateral Agent in the same form as so received (with
         any necessary endorsement).

                  (b) Upon the occurrence and during the continuance of an Event
of Default, after the Collateral Agent shall have notified the Pledgors of the
suspension of their rights under paragraph (a)(iii) of this Section 3.05, then
all rights of any Pledgor to dividends, interest, principal or other
distributions that such Pledgor is authorized to receive pursuant to paragraph
(a)(iii) of this Section 3.05 shall cease, and all such rights shall thereupon
become vested in the Collateral Agent, which shall have the sole and exclusive
right and authority to receive and retain such dividends, interest, principal or
other distributions. All dividends, interest, principal or other distributions
received by any Pledgor contrary to the provisions of this Section 3.05 shall be
held in trust for the benefit of the Collateral Agent, shall be segregated from
other property or funds of such Pledgor and shall be forthwith delivered to the
Collateral Agent upon demand in the same form as so received (with any necessary
endorsement). Any and all money and other property paid over to or received by
the Collateral Agent pursuant to the provisions of this paragraph (b) shall be
retained by the Collateral Agent in an account to be established by the
Collateral Agent upon receipt of such money or other property and shall be
applied in accordance with the provisions of Section 5.02. After all Events of
Default have been cured or waived, the Collateral Agent shall,

<PAGE>

                                                                              16

within five Business Days after all such Events of Default have been cured or
waived, repay to each Pledgor (without interest) all dividends, interest,
principal or other distributions that such Pledgor would otherwise be permitted
to retain pursuant to the terms of paragraph (a)(iii) of this Section 3.05 and
that remain in such account.

                  (c) Upon the occurrence and during the continuance of an Event
of Default, after the Collateral Agent shall have notified the Pledgors of the
suspension of their rights under paragraph (a)(i) of this Section 3.05, then all
rights of any Pledgor to exercise the voting and consensual rights and powers it
is entitled to exercise pursuant to paragraph (a)(i) of this Section 3.05, and
the obligations of the Collateral Agent under paragraph (a)(ii) of this Section
3.05, shall cease, and all such rights shall thereupon become vested in the
Collateral Agent, which shall have the sole and exclusive right and authority to
exercise such voting and consensual rights and powers; provided that, unless
otherwise directed by the Required Lenders, the Collateral Agent shall have the
right from time to time following and during the continuance of an Event of
Default to permit the Pledgors to exercise such rights.

                  (d) Any notice given by the Collateral Agent to the Pledgors
suspending their rights under paragraph (a) of this Section 3.05 (i) may be
given by telephone if promptly confirmed in writing, (ii) may be given to one or
more of the Pledgors at the same or different times and (iii) may suspend the
rights of the Pledgors under paragraph (a)(i) or paragraph (a)(iii) in part
without suspending all such rights (as specified by the Collateral Agent in its
sole and absolute discretion) and without waiving or otherwise affecting the
Collateral Agent's rights to give additional notices from time to time
suspending other rights so long as an Event of Default has occurred and is
continuing.

                                   ARTICLE IV

                     Security Interests in Personal Property

                  SECTION 4.01. Security Interest. (a) As security for the
payment or performance, as the case may be, in full of the Obligations, each
Grantor hereby assigns and pledges to the Collateral Agent, its successors and
assigns, for the ratable benefit of the Secured Parties, and hereby grants to
the Collateral Agent, its successors and assigns, for the ratable benefit of the
Secured Parties, a security interest (the "Security Interest"), in all right,
title or interest now owned or at any time hereafter acquired by such

<PAGE>

                                                                              17

Grantor or in which such Grantor now has or at any time in the future may
acquire any right, title or interest (collectively, the "Collateral"):

                  (i) all Accounts;

                  (ii) all Chattel Paper;

                  (iii) all Documents;

                  (iv) all Equipment;

                  (v) all General Intangibles (other than Non-Pledged Equity
         Interests);

                  (vi) all Instruments;

                  (vii) all Inventory;

                  (viii) all Seed;

                  (ix) all Investment Property (other than Non-Pledged Equity
         Interests);

                  (x) all books and records pertaining to the Collateral; and

                  (xi) to the extent not otherwise included, all Proceeds and
         products of any and all of the foregoing and all collateral security
         and guarantees given by any Person with respect to any of the
         foregoing;

provided, however, that Collateral shall not include CoBank Accounts and Account
Assets with respect to CoBank Accounts.

         (b) Each Grantor hereby irrevocably authorizes the Collateral Agent at
any time and from time to time to file in any relevant jurisdiction any initial
financing statements (including fixture filings) and amendments thereto that
contain the information required by Article 9 of the Uniform Commercial Code of
each applicable jurisdiction for the filing of any financing statement or
amendment, including (a) whether the Grantor is an organization, the type of
organization and any organizational identification number issued to the Grantor
and (b) in the case of a financing statement filed as a fixture filing or
covering Collateral constituting minerals or the like to be extracted or timber
to be cut, a sufficient description of the real property to which such
Collateral relates. The Grantor agrees to provide such information to the
Collateral Agent promptly upon request.

<PAGE>

                                                                              18

                  Each Grantor also ratifies its authorization for the
Collateral Agent to file in any relevant jurisdiction any initial financing
statements or amendments thereto if filed prior to the date hereof.

                  The Collateral Agent is further authorized to file filings
with the United States Patent and Trademark Office or United States Copyright
Office (or any successor office or any similar office in any other country) or
other documents for the purpose of perfecting, confirming, continuing, enforcing
or protecting the Security Interest granted by each Grantor, without the
signature of any Grantor, and naming any Grantor or the Grantors as debtors and
the Collateral Agent as secured party, such filing to be in substantially the
form of Exhibits A-1, A-2 and A-3.

                  (c) The Security Interest is granted as security only and
shall not subject the Collateral Agent or any other Secured Party to, or in any
way alter or modify, any obligation or liability of any Grantor with respect to
or arising out of the Collateral.

                  SECTION 4.02. Representations and Warranties. The Grantors
jointly and severally represent and warrant to the Collateral Agent and the
Secured Parties that:

                  (a) each Grantor has good and valid rights in and title to the
         Collateral with respect to which it has purported to grant a Security
         Interest hereunder and has full power and authority to grant to the
         Collateral Agent the Security Interest in such Collateral pursuant
         hereto and to execute, deliver and perform its obligations in
         accordance with the terms of this Agreement, without the consent or
         approval of any other Person other than any consent or approval that
         has been obtained or the absence of any consent or approval relating
         only to immaterial portions of the Collateral;

                  (b)(i) the Perfection Certificate has been duly prepared,
         completed and executed and the information set forth therein, including
         the exact legal name of such Grantor, is correct and complete. Uniform
         Commercial Code financing statements (including fixture filings, as
         applicable) or other appropriate filings, recordings or registrations
         containing a description of the Collateral have been prepared by the
         Collateral Agent based upon the information provided to the Collateral
         Agent in the Perfection Certificate for filing in each governmental,
         municipal or other office specified in Schedule II to the Perfection
         Certificate, which are all the filings, recordings and registrations

<PAGE>

                                                                              19

         (other than filings required to be made in the United States Patent and
         Trademark Office and the United States Copyright Office in order to
         perfect the Security Interest in Collateral consisting of United States
         Patents, Trademarks and Copyrights) that are necessary to publish
         notice of and protect the validity of and to establish a legal, valid
         and perfected security interest in favor of the Collateral Agent (for
         the ratable benefit of the Secured Parties) in respect of all
         Collateral in which the Security Interest may be perfected by filing,
         recording or registration in the United States (or any political
         subdivision thereof) and its territories and possessions, and no
         further or subsequent filing, refiling, recording, rerecording,
         registration or reregistration is necessary in any such jurisdiction,
         except as provided under applicable law with respect to the filing of
         continuation statements; and (ii) each Grantor represents and warrants
         that a fully executed agreement substantially in the form of Exhibits
         A-1, A-2 and A-3 hereto and containing a description of all Collateral
         consisting of Intellectual Property with respect to United States
         Patents and United States registered Trademarks (and Trademarks for
         which United States registration applications are pending) and within
         one month after the execution of this Agreement with respect to United
         States registered Copyrights, have been delivered to the Collateral
         Agent for recording by the United States Patent and Trademark Office
         and the United States Copyright Office pursuant to 35 U.S.C. ss. 261,
         15 U.S.C. ss. 1060 or 17 U.S.C. ss. 205 and the regulations thereunder,
         as applicable, and otherwise as may be required pursuant to the laws of
         any other necessary jurisdiction, to protect the validity of and to
         establish a legal, valid and perfected security interest in favor of
         the Collateral Agent (for the ratable benefit of the Secured Parties)
         in respect of all Collateral consisting of United States Patents,
         United States Trademarks and Copyrights in which a security interest
         may be perfected by filing, recording or registration in the United
         States (or any political subdivision thereof) and its territories and
         possessions, or in any other necessary jurisdiction, and no further or
         subsequent filing, refiling, recording, rerecording, registration or
         reregistration is necessary (other than such actions as are necessary
         to perfect the Security Interest with respect to any Collateral
         consisting of Patents, Trademarks and Copyrights (or registration or
         application for registration thereof) acquired or developed after the
         date hereof);

<PAGE>

                                                                              20

                  (c) the Security Interest constitutes (i) a legal and valid
         security interest in all the Collateral securing the payment and
         performance of the Obligations, (ii) subject to the filings described
         in Section 4.02(b), a perfected security interest in all Collateral in
         which a security interest may be perfected by filing, recording or
         registering a financing statement or analogous document in the United
         States (or any political subdivision thereof) and its territories and
         possessions pursuant to the Uniform Commercial Code or other applicable
         law in such jurisdictions and (iii) a security interest that shall be
         perfected in all Collateral in which a security interest may be
         perfected upon the receipt and recording of an agreement in
         substantially the form of Exhibits A-1, A-2 and A-3 hereto with the
         United States Patent and Trademark Office and the United States
         Copyright Office, as applicable, within the three-month period
         (commencing as of the date hereof) pursuant to 35 U.S.C. ss. 261 or 15
         U.S.C. ss. 1060 or the one month period (commencing as of the date
         hereof) pursuant to 17 U.S.C. ss. 205 and otherwise as may be required
         pursuant to the laws of any other necessary jurisdiction. The Security
         Interest is and shall be prior to any other Lien on any of the
         Collateral, other than Liens expressly permitted to be prior to the
         Security Interest pursuant to Section 6.02 of the Credit Agreements;
         and

                  (d) the Collateral is owned by the Grantors free and clear of
         any Lien, except for Liens expressly permitted pursuant to Section 6.02
         of the Credit Agreements. None of the Grantors has filed or consented
         to the filing of (i) any financing statement or analogous document
         under the Uniform Commercial Code or any other applicable laws covering
         any Collateral, (ii) any assignment in which any Grantor assigns any
         Collateral or any security agreement or similar instrument covering any
         Collateral with the United States Patent and Trademark Office or the
         United States Copyright Office or (iii) any assignment in which any
         Grantor assigns any Collateral or any security agreement or similar
         instrument covering any Collateral with any foreign governmental,
         municipal or other office, which financing statement or analogous
         document, assignment, security agreement or similar instrument is still
         in effect, except, in each case, for Liens expressly permitted pursuant
         to Section 6.02 of the Credit Agreements.

                  SECTION 4.03. Covenants. (a) Each Grantor

<PAGE>

                                                                              21

agrees promptly to notify the Collateral Agent in writing of any change (i) in
its corporate name, (ii) in the location of its chief executive office, any
office in any jurisdiction that has not adopted Revised Article 9 of the Uniform
Commercial Code in which it maintains books or records relating to Collateral
owned by it or at which Collateral owned by it is located (including the
establishment of any such new office or facility), (iii) in its identity or type
of organization or corporate structure, (iv) in its Federal Taxpayer
Identification Number or organizational identification number or (v) in its
jurisdiction of organization. Each Grantor agrees to promptly provide the
Collateral Agent with certified organizational documents reflecting any of the
changes described in the preceding sentence. Each Grantor agrees not to effect
or permit any change referred to in the first sentence of this paragraph unless
all filings have been made under the Uniform Commercial Code or otherwise that
are required in order for the Collateral Agent to continue at all times
following such change to have a valid, legal and perfected first priority
security interest in all the Collateral. Each Grantor agrees promptly to notify
the Collateral Agent if any material portion of the Collateral owned or held by
such Grantor is damaged or destroyed.

                  (b) Each Grantor agrees to maintain, at its own cost and
expense, such complete and accurate records with respect to the Collateral owned
by it as is consistent with its current practices and in accordance with such
prudent and standard practices used in industries that are the same as or
similar to those in which such Grantor is engaged, but in any event to include
complete accounting records indicating all payments and proceeds received with
respect to any part of the Collateral, and, at such time or times as the
Collateral Agent may reasonably request, (but not more often than once per
calendar year in the absence of an Event of Default) promptly to prepare and
deliver to the Collateral Agent a duly certified schedule or schedules in form
and detail satisfactory to the Collateral Agent showing the identity, amount and
location of any and all Collateral.

                  (c) Each year, at the time of delivery of annual financial
statements with respect to the preceding fiscal year pursuant to Section 5.01(a)
of the Credit Agreements, the Borrower shall deliver to the Collateral Agent a
certificate executed by a Financial Officer and the chief legal officer of the
Borrower setting forth the information required pursuant to Section II of the
Perfection Certificate or confirming that there has been no change in such
information since the date of such certificate or the date of the most recent
certificate delivered pursuant to

<PAGE>

                                                                              22

this Section 4.03(c). Each certificate delivered pursuant to this Section
4.03(c) shall identify in the format of Schedule III all Intellectual Property
of any Grantor in existence on the date thereof and not then listed on such
Schedules or previously so identified to the Collateral Agent.

                  (d) Each Grantor shall, at its own expense, take any and all
actions necessary to defend title to the Collateral against all persons and to
defend the Security Interest of the Collateral Agent in the Collateral and the
priority thereof against any Lien not expressly permitted pursuant to Section
6.02 of the Credit Agreements.

                  (e) Each Grantor agrees, at its own expense, to execute,
acknowledge, deliver and cause to be duly filed all such further instruments and
documents and take all such actions as the Collateral Agent may from time to
time reasonably request to better assure, preserve, protect and perfect the
Security Interest and the rights and remedies created hereby, including the
payment of any fees and taxes required in connection with the execution and
delivery of this Agreement, the granting of the Security Interest and the filing
of any financing statements (including fixture filings) or other documents in
connection herewith or therewith. If any amount payable under or in connection
with any of the Collateral shall be or become evidenced by any promissory note
or other instrument, such note or instrument shall be immediately pledged and
delivered to the Collateral Agent, duly endorsed in a manner satisfactory to the
Collateral Agent. If any limited liability company membership interests or
limited partnership interests held by any Grantor shall become "securities"
within the meaning of Sections 8-102 and 8-103(c) of the New York UCC, any
certificates evidencing such securities shall immediately be pledged and
delivered to the Collateral Agent, duly endorsed in a manner satisfactory to the
Collateral Agent.

                  Without limiting the generality of the foregoing, each Grantor
hereby authorizes the Collateral Agent, with prompt notice thereof to the
Grantors, to supplement this Agreement by supplementing Schedule III or adding
additional schedules hereto to specifically identify any asset or item that may
constitute Copyrights, Licenses, Patents or Trademarks; provided, however, that
any Grantor shall have the right, exercisable within 10 days after it has been
notified by the Collateral Agent of the specific identification of such
Collateral, to advise the Collateral Agent in writing of any inaccuracy of the
representations and warranties made by such Grantor hereunder with respect to
such Collateral. Each Grantor agrees that it will use

<PAGE>

                                                                              23

its best efforts to take such action as shall be necessary in order that all
representations and warranties hereunder shall be true and correct with respect
to such Collateral within 30 days after the date it has been notified by the
Collateral Agent of the specific identification of such Collateral.

                  (f) The Collateral Agent and such persons as the Collateral
Agent may reasonably designate shall have the right, at the Grantors' own cost
and expense, to inspect the Collateral, all records related thereto (and to make
extracts and copies from such records) and the premises upon which any of the
Collateral is located, to discuss the Grantors' affairs with the officers of the
Grantors and their independent accountants and to verify under reasonable
procedures, in accordance with Section 5.09 of the Credit Agreements, the
validity, amount, quality, quantity, value, condition and status of, or any
other matter relating to, the Collateral, including, in the case of Accounts or
Collateral in the possession of any third person, by contacting Account Debtors
or the third person possessing such Collateral for the purpose of making such a
verification (but not more often than twice per calendar year in the absence of
an Event of Default). The Collateral Agent shall have the absolute right to
share any information it gains from such inspection or verification with any
Secured Party.

                  (g) At its option, the Collateral Agent may discharge past due
taxes, assessments, charges or fees not permitted by Section 5.05 of the Credit
Agreements or Liens, security interests or other encumbrances at any time levied
or placed on the Collateral and not permitted pursuant to Section 6.02 of the
Credit Agreements, and may pay for the maintenance and preservation of the
Collateral to the extent any Grantor fails to do so as required by the Credit
Agreements or this Agreement, and each Grantor jointly and severally agrees to
reimburse the Collateral Agent on demand for any payment made or any expense
incurred by the Collateral Agent pursuant to the foregoing authorization;
provided, however, that nothing in this Section 4.03(g) shall be interpreted as
excusing any Grantor from the performance of, or imposing any obligation on the
Collateral Agent or any Secured Party to cure or perform any covenants or other
promises of any Grantor with respect to taxes, assessments, charges, fees,
liens, security interests or other encumbrances and maintenance as set forth
herein or in the other Loan Documents.

                  (h) If at any time any Grantor shall take a security interest
in any property of an Account Debtor or

<PAGE>

                                                                              24

any other person to secure payment and performance of an Account having a value
in excess of $1,000,000 (provided that such dollar limitation shall not apply to
any intercompany Indebtedness), such Grantor shall promptly assign such security
interest to the Collateral Agent. Such assignment need not be filed of public
record unless necessary to continue the perfected status of the security
interest against creditors of and transferees from the Account Debtor or other
person granting the security interest.

                  (i) Each Grantor shall remain liable to observe and perform
all the conditions and obligations to be observed and performed by it under each
contract, agreement or instrument relating to the Collateral, all in accordance
with the terms and conditions thereof, and each Grantor jointly and severally
agrees to indemnify and hold harmless the Collateral Agent and the Secured
Parties from and against any and all liability for such performance.

                  (j) None of the Grantors shall make or permit to be made an
assignment, pledge or hypothecation of the Collateral or shall grant any other
Lien in respect of the Collateral, except as expressly permitted by Section 6.02
of the Credit Agreements. None of the Grantors shall make or permit to be made
any transfer of the Collateral and each Grantor shall remain at all times in
possession of the Collateral owned by it, except that (a) Inventory may be sold
in the ordinary course of business and (b) unless and until the Collateral Agent
shall notify the Grantors that an Event of Default shall have occurred and be
continuing and that during the continuance thereof the Grantors shall not sell,
convey, lease, assign, transfer or otherwise dispose of any Collateral (which
notice may be given by telephone if promptly confirmed in writing), the Grantors
may use and dispose of the Collateral in any lawful manner not inconsistent with
the provisions of this Agreement, the Credit Agreements or any other Loan
Document. Without limiting the generality of the foregoing, each Grantor agrees
that it shall use commercially reasonable efforts not to permit any Inventory to
be in the possession or control of any warehouseman, bailee, agent or processor
at any time unless such warehouseman, bailee, agent or processor shall have been
notified of the Security Interest and shall have acknowledged in writing, in
form and substance satisfactory to the Collateral Agent, that such bailee or
processor holds the Inventory for the benefit of the Collateral Agent subject to
the Security Interest and shall act upon the instructions of the Collateral
Agent without further consent from the Grantor, and that such warehouseman,
agent, bailee or processor further agrees to waive and release any Lien

<PAGE>

                                                                              25

held by it with respect to such Inventory, whether arising by operation of law
or otherwise; provided, however, that notwithstanding the foregoing, the
requirement to notify any warehouseman, bailee, agent or processor of the
Security Interest shall only apply to such locations where Inventory is held
where the value of such Inventory exceeds $2,000,000, based on the highest value
of such Inventory at June 30 of the preceding fiscal year.

                  (k) None of the Grantors will, without the Collateral Agent's
prior written consent, grant any extension of the time of payment of any
Accounts included in the Collateral, compromise, compound or settle the same for
less than the full amount thereof, release, wholly or partly, any person liable
for the payment thereof or allow any credit or discount whatsoever thereon,
other than extensions, credits, discounts, compromises or settlements granted or
made in the ordinary course of business and consistent with its current
practices and in accordance with such prudent and standard practice used in
industries that are the same as or similar to those in which such Grantor is
engaged.

                  (l) The Grantors, at their own expense, shall maintain or
cause to be maintained insurance covering physical loss or damage to the
Inventory and Equipment in accordance with Section 5.07 of the Credit
Agreements. Each Grantor irrevocably makes, constitutes and appoints the
Collateral Agent (and all officers, employees or agents designated by the
Collateral Agent) as such Grantor's true and lawful agent (and attorney-in-fact)
for the purpose, during the continuance of an Event of Default, of making,
settling and adjusting claims in respect of Collateral under policies of
insurance, endorsing the name of such Grantor on any check, draft, instrument or
other item of payment for the proceeds of such policies of insurance and for
making all determinations and decisions with respect thereto. In the event that
any Grantor at any time or times shall fail to obtain or maintain any of the
policies of insurance required hereby or to pay any premium in whole or part
relating thereto, the Collateral Agent may, without waiving or releasing any
obligation or liability of the Grantors hereunder or any Event of Default, in
its sole discretion, obtain and maintain such policies of insurance and pay such
premium and take any other actions with respect thereto as the Collateral Agent
deems advisable. All sums disbursed by the Collateral Agent in connection with
this Section 4.03(l), including reasonable attorneys' fees, court costs,
expenses and other charges relating thereto, shall be payable, upon demand, by
the Grantors to the Collateral Agent and shall be additional Obligations secured
hereby.

<PAGE>

                                                                              26

                  (m) Each Grantor shall legend, in form and manner satisfactory
to the Collateral Agent, its Chattel Paper and its books, records and documents
evidencing or pertaining thereto with an appropriate reference to the fact that
such Chattel Paper have been assigned to the Collateral Agent for the benefit of
the Secured Parties and that the Collateral Agent has a security interest
therein.

                  SECTION 4.04. Other Actions. In order to further insure the
attachment, perfection and priority of, and the ability of the Collateral Agent
to enforce, the Collateral Agent's security interest in the Collateral, each
Grantor agrees, in each case at such Grantor's own expense, to take the
following actions with respect to the following Collateral:

                  (a) Instruments and Tangible Chattel Paper. If any Grantor
         shall at any time hold or acquire any Instruments or Tangible Chattel
         Paper, such Grantor shall forthwith endorse, assign and deliver the
         same to the Collateral Agent, accompanied by such instruments of
         transfer or assignment duly executed in blank as the Collateral Agent
         may from time to time specify.

                  (b) Investment Property. If any Grantor shall at any time hold
         or acquire any certificated securities which constitute Collateral,
         such Grantor shall forthwith endorse, assign and deliver the same to
         the Collateral Agent, accompanied by such instruments of transfer or
         assignment duly executed in blank as the Collateral Agent may from time
         to time specify. If any securities which constitute Collateral now or
         hereafter acquired by any Grantor are uncertificated and are issued to
         such Grantor or its nominee directly by the issuer thereof, such
         Grantor shall immediately notify the Collateral Agent thereof and, at
         the Collateral Agent's request and option, pursuant to an agreement in
         form and substance satisfactory to the Collateral Agent, either (a)
         cause the issuer to agree to comply with instructions from the
         Collateral Agent as to such securities, without further consent of any
         Grantor or such nominee, or (b) arrange for the Collateral Agent to
         become the registered owner of the securities. The provisions of this
         paragraph shall not apply to any financial assets credited to a
         securities account for which the Collateral Agent is the securities
         intermediary.

                  (c) Electronic Chattel Paper and Transferable Records. If any
         Grantor at any time holds or acquires an interest in any electronic
         chattel paper or any

<PAGE>

                                                                              27

         "transferable record," as that term is defined in Section 201 of the
         Federal Electronic Signatures in Global and National Commerce Act, or
         in ss. 16 of the Uniform Electronic Transactions Act as in effect in
         any relevant jurisdiction, such Grantor shall promptly notify the
         Collateral Agent thereof and, at the request of the Collateral Agent,
         shall take such action as the Collateral Agent may reasonably request
         to vest in the Collateral Agent control under New York UCC ss.9-105 of
         such electronic chattel paper or control under Section 201 of the
         Federal Electronic Signatures in Global and National Commerce Act or,
         as the case may be, ss.16 of the Uniform Electronic Transactions Act,
         as so in effect in such jurisdiction, of such transferable record.

                  SECTION 4.05. Covenants regarding Patent, Trademark and
Copyright Collateral. (a) Each Grantor agrees that it will not, and will not
permit any of its licensees to, do any act, or omit to do any act, whereby any
Patent that is material to the conduct of such Grantor's business may become
invalidated or dedicated to the public, and agrees that it shall continue to
mark any products covered by a Patent (other than Patents claiming a process or
method) with the relevant patent number as necessary and sufficient to establish
and preserve its maximum rights under applicable patent laws.

                  (b) Each Grantor (either itself or through its licensees or
its sublicensees) will, for each Registered Trademark material to the conduct of
such Grantor's business, (1) maintain such Trademark registration in full force
as long as the Trademark is being used, (2) maintain the quality of products and
services offered under such Trademark, (3) display such Trademark with notice of
Federal or foreign registration to the extent necessary and sufficient to
establish and preserve its maximum rights under applicable law and (4) not
knowingly use or knowingly permit the use of such Trademark in violation of any
third party rights.

                  (c) Each Grantor (either itself or through its licensees or
sublicensees) will, for each work covered by a material Copyright, continue to
publish, reproduce, display, adopt and distribute the work with appropriate
copyright notice as necessary and sufficient to establish and preserve its
maximum rights under applicable copyright laws.

                  (d) Each Grantor shall notify the Collateral Agent immediately
if it knows or has reason to know that any Patent, Trademark or Copyright
material to the conduct of

<PAGE>

                                                                              28

its business may become abandoned, lost or dedicated to the public, or of any
adverse determination or development (including the institution of, or any such
determination or development in, any proceeding in the United States Patent and
Trademark Office, United States Copyright Office or any court or similar office
of any country) regarding such Grantor's ownership of any Patent, Trademark or
Copyright, its right to register the same, or its right to keep and maintain the
same.

                  (e) When any Grantor, either itself or through any agent,
employee, licensee or designee, files an application for any Patent, or an
application to register any trademark or copyright with the United States Patent
and Trademark Office or United States Copyright Office it will promptly inform
the Collateral Agent, and, upon request of the Collateral Agent, execute and
deliver any and all agreements, instruments, documents and papers as the
Collateral Agent may request to evidence the Collateral Agent's security
interest in such Patent, Trademark or Copyright, and each Grantor hereby
appoints the Collateral Agent as its attorney-in-fact to execute and file such
writings for the foregoing purposes, all acts of such attorney being hereby
ratified and confirmed; such power, being coupled with an interest, is
irrevocable; provided however that such power of attorney may only be exercised
following (i) such Grantor's failure to take all necessary actions as set forth
in this paragraph or (ii) upon the occurrence and during the continuance of an
Event of Default.

                  (f) Each Grantor will take all necessary steps that are
consistent with the practice in any proceeding before the United States Patent
and Trademark Office, United States Copyright Office or any office or agency in
any political subdivision of the United States to maintain and pursue each
material application relating to the Patents, Trademarks and/or Copyrights (and
to obtain the relevant grant or registration) and to maintain each issued Patent
and each registration of the Trademarks and Copyrights that is material to the
conduct of any Grantor's business, including timely filings of applications for
renewal, declarations of use, declarations of incontestability and payment of
maintenance fees, and, if consistent with good business judgment, to initiate
opposition, interference and cancelation proceedings against third parties.

                  (g) In the event that any Grantor has reason to believe that
any Collateral consisting of a Patent, Trademark or Copyright material to the
conduct of any Grantor's business has been or is about to be infringed,

<PAGE>

                                                                              29

misappropriated or diluted by a third party, such Grantor promptly shall notify
the Collateral Agent and shall, if consistent with good business judgment,
promptly sue for infringement, misappropriation or dilution and to recover any
and all damages for such infringement, misappropriation or dilution, and take
such other actions as are appropriate under the circumstances to protect such
Collateral.

                  (h) Upon and during the continuance of an Event of Default,
each Grantor shall use its best efforts to obtain all requisite consents or
approvals by the licensor of each Copyright License, Patent License or Trademark
License to effect the assignment of all such Grantor's right, title and interest
thereunder to the Collateral Agent or its designee.

                                    ARTICLE V

                                    Remedies

                  SECTION 5.01. Remedies upon Default. Upon the occurrence and
during the continuance of an Event of Default, each Grantor agrees to deliver
each item of Collateral to the Collateral Agent on demand, and it is agreed that
the Collateral Agent shall have the right to take any of or all the following
actions at the same or different times: (a) with respect to any Collateral
consisting of Intellectual Property, on demand, to cause the Security Interest
to become an assignment, transfer and conveyance of any of or all such
Collateral by the applicable Grantors to the Collateral Agent, or to license or
sublicense, whether general, special or otherwise, and whether on an exclusive
or nonexclusive basis, any such Collateral throughout the world on such terms
and conditions and in such manner as the Collateral Agent shall determine (other
than in violation of any then-existing licensing arrangements to the extent that
waivers cannot be obtained), and (b) with or without legal process and with or
without prior notice or demand for performance, to take possession of the
Collateral and without liability for trespass to enter any premises where the
Collateral may be located for the purpose of taking possession of or removing
the Collateral and, generally, to exercise any and all rights afforded to a
secured party under the Uniform Commercial Code or other applicable law. Without
limiting the generality of the foregoing, (i) each Grantor agrees that the
Collateral Agent shall have the right, subject to the mandatory requirements of
applicable law, to sell or otherwise dispose of all or any part of the
Collateral or Pledged Collateral, at public or private sale or at any

<PAGE>

                                                                              30

broker's board or on any securities exchange, for cash, upon credit or for
future delivery as the Collateral Agent shall deem appropriate and (ii) the
Collateral Agent shall have the ability to direct Land O'Lakes, Inc. to give its
consent in connection with the sale, transfer or other disposition of its
membership interest in Land O'Lakes Farmland Feed LLC. The Collateral Agent
shall be authorized at any such sale (if it deems it advisable to do so) to
restrict the prospective bidders or purchasers to persons who will represent and
agree that they are purchasing the Collateral or Pledged Collateral for their
own account for investment and not with a view to the distribution or sale
thereof, and upon consummation of any such sale the Collateral Agent shall have
the right to assign, transfer and deliver to the purchaser or purchasers thereof
the Collateral or Pledged Collateral so sold. Each such purchaser at any such
sale shall hold the property sold absolutely, free from any claim or right on
the part of any Grantor or Pledgor, and the Grantors and Pledgors hereby waive
(to the extent permitted by law) all rights of redemption, stay and appraisal
which such Grantor or Pledgor now has or may at any time in the future have
under any rule of law or statute now existing or hereafter enacted.

                  The Collateral Agent shall give the Grantors and Pledgors 10
days' written notice (which each Grantor or Pledgor agrees is reasonable notice
within the meaning of Section 9-611 of the New York UCC or its equivalent in
other jurisdictions) of the Collateral Agent's intention to make any sale of
Collateral. Such notice, in the case of a public sale, shall state the time and
place for such sale and, in the case of a sale at a broker's board or on a
securities exchange, shall state the board or exchange at which such sale is to
be made and the day on which the Collateral or Pledged Collateral, or portion
thereof, will first be offered for sale at such board or exchange. Any such
public sale shall be held at such time or times within ordinary business hours
and at such place or places as the Collateral Agent may fix and state in the
notice (if any) of such sale. At any such sale, the Collateral or Pledged
Collateral, or portion thereof, to be sold may be sold in one lot as an entirety
or in separate parcels, as the Collateral Agent may (in its sole and absolute
discretion) determine. The Collateral Agent shall not be obligated to make any
sale of any Collateral or Pledged Collateral if it shall determine not to do so,
regardless of the fact that notice of sale of such Collateral or Pledged
Collateral shall have been given. The Collateral Agent may, without notice or
publication, adjourn any public or private sale or cause the same to be
adjourned from time to time by announcement at the time and place fixed for
sale, and such

<PAGE>

                                                                              31

sale may, without further notice, be made at the time and place to which the
same was so adjourned. In case any sale of all or any part of the Collateral or
Pledged Collateral is made on credit or for future delivery, the Collateral or
Pledged Collateral so sold may be retained by the Collateral Agent until the
sale price is paid by the purchaser or purchasers thereof, but the Collateral
Agent shall not incur any liability in case any such purchaser or purchasers
shall fail to take up and pay for the Collateral or Pledged Collateral so sold
and, in case of any such failure, such Collateral or Pledged Collateral may be
sold again upon like notice. At any public (or, to the extent permitted by law,
private) sale made pursuant to this Section, any Secured Party may bid for or
purchase, free (to the extent permitted by law) from any right of redemption,
stay, valuation or appraisal on the part of any Grantor or Pledgor (all said
rights being also hereby waived and released to the extent permitted by law),
the Collateral or Pledged Collateral or any part thereof offered for sale and
may make payment on account thereof by using any claim then due and payable to
such Secured Party from any Grantor or Pledgor as a credit against the purchase
price, and such Secured Party may, upon compliance with the terms of sale, hold,
retain and dispose of such property without further accountability to any
Grantor or Pledgor therefor. For purposes hereof, a written agreement to
purchase the Collateral or Pledged Collateral or any portion thereof shall be
treated as a sale thereof; the Collateral Agent shall be free to carry out such
sale pursuant to such agreement and no Grantor or Pledgor shall be entitled to
the return of the Collateral or Pledged Collateral or any portion thereof
subject thereto, notwithstanding the fact that after the Collateral Agent shall
have entered into such an agreement all Events of Default shall have been
remedied and the Obligations paid in full. As an alternative to exercising the
power of sale herein conferred upon it, the Collateral Agent may proceed by a
suit or suits at law or in equity to foreclose this Agreement and to sell the
Collateral or Pledged Collateral or any portion thereof pursuant to a judgment
or decree of a court or courts having competent jurisdiction or pursuant to a
proceeding by a court-appointed receiver. Any sale pursuant to the provisions of
this Section 5.01 shall be deemed to conform to the commercially reasonable
standards as provided in Section 9-610(b) of the New York UCC or its equivalent
in other jurisdictions. The Collateral Agent recognizes that its ability to sell
membership interests or require the registration of such membership interests
pursuant to Section 5.05 of this Agreement is subject to Section 11.1 of the
Farmland Feed Operating Agreement in the case of Farmland Feed and its
subsidiaries.

<PAGE>

                                                                              32

                  Until the Collateral Agent shall have advised the Grantors to
the contrary, each Grantor shall, and the Collateral Agent hereby authorizes
each Grantor to, enforce and collect all amounts owing on the Inventory and
Accounts, for the benefit and on behalf of the Collateral Agent and the other
Secured Parties, provided, however, that such privilege may at the option of the
Collateral Agent be terminated upon the occurrence and during the continuance of
any Event of Default.

                  Upon the occurrence and during the continuance of any Event of
Default, the Collateral Agent shall have the right to notify each Account Debtor
of the occurrence of such Event of Default and have the right to direct the
payment of each Account Debtor away from each Grantor's regular account and into
an account established by the Collateral Agent. Each Grantor agrees to use all
reasonable efforts to cooperate with the Collateral Agent and each Account
Debtor to cause all payments on Accounts to be paid directly into the account
established by the Collateral Agent. In the event any Grantor receives payments
directly that otherwise should be paid to the Collateral Agent, as provided
herein, such Grantor will promptly remit such amount to the Collateral Agent.

                  SECTION 5.02. Application of Proceeds. The Collateral Agent
shall apply the proceeds of any collection or sale of Collateral or Pledged
Collateral, as well as any Collateral or Pledged Collateral consisting of cash,
as follows:

                  FIRST, to the payment of all costs and expenses incurred by
         the Collateral Agent in connection with such collection or sale or
         otherwise in connection with this Agreement, any other Loan Document or
         any of the Obligations, including all court costs and the fees and
         expenses of its agents and legal counsel, the repayment of all advances
         made by the Collateral Agent or the Administrative Agent hereunder or
         under any other Loan Document on behalf of any Grantor or Pledgor and
         any other costs or expenses incurred in connection with the exercise of
         any right or remedy hereunder or under any other Loan Document;

                  SECOND, to the payment in full of the Obligations (the amounts
         so applied to be distributed among the Secured Parties pro rata in
         accordance with the amounts of the Obligations owed to them on the date
         of any such distribution); and

                  THIRD, to the Grantors and Pledgors, their

<PAGE>

                                                                              33

         successors or assigns, or as a court of competent jurisdiction may
         otherwise direct.

The Collateral Agent shall have absolute discretion as to the time of
application of any such proceeds, moneys or balances in accordance with this
Agreement. Upon any sale of Collateral or Pledged Collateral by the Collateral
Agent (including pursuant to a power of sale granted by statute or under a
judicial proceeding), the receipt of the Collateral Agent or of the officer
making the sale shall be a sufficient discharge to the purchaser or purchasers
of the Collateral or Pledged Collateral so sold and such purchaser or purchasers
shall not be obligated to see to the application of any part of the purchase
money paid over to the Collateral Agent or such officer or be answerable in any
way for the misapplication thereof.

                  SECTION 5.03. Grant of License to Use Intellectual Property.
For the purpose of enabling the Collateral Agent to exercise rights and remedies
under this Article at such time as the Collateral Agent shall be lawfully
entitled to exercise such rights and remedies, each Grantor hereby grants to the
Collateral Agent an irrevocable, nonexclusive license but subject to the terms,
conditions or restrictions of any existing license (exercisable without payment
of royalty or other compensation to the Grantors) to use, license or sublicense
any of the Collateral consisting of Intellectual Property now owned or hereafter
acquired by such Grantor, and wherever the same may be located, and including in
such license reasonable access to all media in which any of the licensed items
may be recorded or stored and to all computer software and programs used for the
compilation or printout thereof. The use of such license by the Collateral Agent
shall be exercised, at the option of the Collateral Agent, upon the occurrence
and during the continuation of an Event of Default; provided that any license,
sublicense or other transaction entered into by the Collateral Agent in
accordance herewith shall be binding upon the Grantors notwithstanding any
subsequent cure of an Event of Default.

                  SECTION 5.04. Securities Act, etc. In view of the position of
the Pledgors in relation to the Pledged Securities, or because of other current
or future circumstances, a question may arise under the Securities Act of 1933,
as now or hereafter in effect, or any similar statute hereafter enacted
analogous in purpose or effect (such Act and any such similar statute as from
time to time in effect being called the "Federal Securities Laws") with respect
to any disposition of the Pledged Securities permitted hereunder. Each Pledgor
understands that

<PAGE>

                                                                              34

compliance with the Federal Securities Laws might very strictly limit the course
of conduct of the Collateral Agent if the Collateral Agent were to attempt to
dispose of all or any part of the Pledged Securities, and might also limit the
extent to which or the manner in which any subsequent transferee of any Pledged
Securities could dispose of the same. Similarly, there may be other legal
restrictions or limitations affecting the Collateral Agent in any attempt to
dispose of all or part of the Pledged Securities under applicable Blue Sky or
other state securities laws or similar laws analogous in purpose or effect. Each
Pledgor recognizes that in light of such restrictions and limitations the
Collateral Agent may, with respect to any sale of the Pledged Securities, limit
the purchasers to those who will agree, among other things, to acquire such
Pledged Securities for their own account, for investment, and not with a view to
the distribution or resale thereof. Each Pledgor acknowledges and agrees that in
light of such restrictions and limitations, the Collateral Agent, in its sole
and absolute discretion (a) may proceed to make such a sale whether or not a
registration statement for the purpose of registering such Pledged Securities or
part thereof shall have been filed under the Federal Securities Laws and (b) may
approach and negotiate with a single potential purchaser to effect such sale.
Each Pledgor acknowledges and agrees that any such sale might result in prices
and other terms less favorable to the seller than if such sale were a public
sale without such restrictions. In the event of any such sale, the Collateral
Agent shall incur no responsibility or liability for selling all or any part of
the Pledged Securities at a price that the Collateral Agent, in its sole and
absolute discretion, may in good faith deem reasonable under the circumstances,
notwithstanding the possibility that a substantially higher price might have
been realized if the sale were deferred until after registration as aforesaid or
if more than a single purchaser were approached. The provisions of this Section
5.04 will apply notwithstanding the existence of a public or private market upon
which the quotations or sales prices may exceed substantially the price at which
the Collateral Agent sells.

                  SECTION 5.05. Registration, etc. Each Pledgor agrees that,
upon the occurrence and during the continuance of an Event of Default hereunder,
if for any reason the Collateral Agent desires to sell any of the Pledged
Securities of the Borrower at a public sale, it will, at any time and from time
to time, upon the written request of the Collateral Agent, use its commercially
reasonable efforts to take or to cause the issuer of such Pledged Securities to
take such action and prepare, distribute and/or file such documents, as are
required or advisable in the reasonable

<PAGE>

                                                                              35

opinion of counsel for the Collateral Agent to permit the public sale of such
Pledged Securities. Each Pledgor further agrees to indemnify, defend and hold
harmless the Collateral Agent, each other Secured Party, any underwriter and
their respective officers, directors, affiliates and controlling persons from
and against all loss, liability, expenses, costs of counsel (including, without
limitation, reasonable fees and expenses to the Collateral Agent of legal
counsel), and claims (including the costs of investigation) that they may incur
insofar as such loss, liability, expense or claim arises out of or is based upon
any alleged untrue statement of a material fact contained in any prospectus (or
any amendment or supplement thereto) or in any notification or offering
circular, or arises out of or is based upon any alleged omission to state a
material fact required to be stated therein or necessary to make the statements
in any thereof not misleading, except insofar as the same may have been caused
by any untrue statement or omission based upon information furnished in writing
to such Pledgor or the issuer of such Pledged Securities by the Collateral Agent
or any other Secured Party expressly for use therein. Each Pledgor further
agrees, upon such written request referred to above, to use its best efforts to
qualify, file or register, or cause the issuer of such Pledged Securities to
qualify, file or register, any of the Pledged Securities under the Blue Sky or
other securities laws of such states as may be requested by the Collateral Agent
and keep effective, or cause to be kept effective, all such qualifications,
filings or registrations. Each Pledgor will bear all costs and expenses of
carrying out its obligations under this Section 5.05. Each Pledgor acknowledges
that there is no adequate remedy at law for failure by it to comply with the
provisions of this Section 5.05 and that such failure would not be adequately
compensable in damages, and therefore agrees that its agreements contained in
this Section 5.05 may be specifically enforced.

                                   ARTICLE VI

                            Indemnity and Subrogation

                  SECTION 6.01. Indemnity and Subrogation. In addition to all
such rights of indemnity and subrogation as the Guarantors may have under
applicable law (but subject to Section 6.03), the Borrower agrees that (a) in
the event a payment shall be made by any Guarantor under this Agreement, the
Borrower shall indemnify such Guarantor for the full amount of such payment and
such Guarantor shall be subrogated to the rights of the person to whom such
payment shall have been made to the extent of such payment and

<PAGE>

                                                                              36

(b) in the event any assets of any Guarantor shall be sold pursuant to any
Security Document to satisfy a claim of any Secured Party, the Borrower shall
indemnify such Guarantor in an amount equal to the greater of the book value or
the fair market value of the assets so sold.

                  SECTION 6.02. Contribution and Subrogation. Each Guarantor (a
"Contributing Guarantor") agrees (subject to Section 6.03) that, in the event a
payment shall be made by any other Guarantor hereunder or assets of any other
Guarantor shall be sold pursuant to any Security Document to satisfy a claim of
any Secured Party and such other Guarantor (the "Claiming Guarantor") shall not
have been fully indemnified by the Borrower as provided in Section 6.01, the
Contributing Guarantor shall indemnify the Claiming Guarantor in an amount equal
to the amount of such payment or the greater of the book value or the fair
market value of such assets, as the case may be, in each case multiplied by a
fraction of which the numerator shall be the net worth of the Contributing
Guarantor on the date hereof and the denominator shall be the aggregate net
worth of all the Guarantors on the date hereof (or, in the case of any Guarantor
becoming a party hereto pursuant to Section 7.16, the date of the Supplement
hereto executed and delivered by such Guarantor). Any Contributing Guarantor
making any payment to a Claiming Guarantor pursuant to this Section 6.02 shall
be subrogated to the rights of such Claiming Guarantor under Section 6.01 to the
extent of such payment.

                  SECTION 6.03. Subordination. Notwithstanding any provision of
this Agreement to the contrary, all rights of the Guarantors under Sections 6.01
and 6.02 and all other rights of indemnity, contribution or subrogation under
applicable law or otherwise shall be fully subordinated to the indefeasible
payment in full in cash of the Obligations. No failure on the part of the
Borrower or any Guarantor to make the payments required by Sections 6.01 and
6.02 (or any other payments required under applicable law or otherwise) shall in
any respect limit the Obligations and liabilities of any Guarantor with respect
to its Obligations hereunder, and each Guarantor shall remain liable for the
full amount of the Obligations of such Guarantor hereunder.

                                   ARTICLE VII

                                  Miscellaneous

                  SECTION 7.01. Notices. All communications and notices
hereunder shall (except as otherwise expressly

<PAGE>

                                                                              37

permitted herein) be in writing and given as provided in Section 9.01 of the
Credit Agreements. All communications and notices hereunder to any Subsidiary
Loan Party shall be given to it at its address or telecopy number set forth on
Schedule I, with a copy to the Borrower.

                  SECTION 7.02. Security Interest Absolute. All rights of the
Collateral Agent hereunder, the Security Interest, the grant of a security
interest in the Pledged Collateral and all obligations of each Grantor and
Pledgor hereunder shall be absolute and unconditional irrespective of (a) any
lack of validity or enforceability of the Credit Agreements, any other Loan
Document, any agreement with respect to any of the Obligations or any other
agreement or instrument relating to any of the foregoing, (b) any change in the
time, manner or place of payment of, or in any other term of, all or any of the
Obligations, or any other amendment or waiver of or any consent to any departure
from the Credit Agreements, any other Loan Document or any other agreement or
instrument, (c) any exchange, release or non-perfection of any Lien on other
collateral, or any release or amendment or waiver of or consent under or
departure from any guarantee, securing or guaranteeing all or any of the
Obligations, or (d) any other circumstance that might otherwise constitute a
defense available to, or a discharge of, any Grantor or Pledgor in respect of
the Obligations or this Agreement.

                  SECTION 7.03. Survival of Agreement. All covenants,
agreements, representations and warranties made by the Loan Parties in the Loan
Documents and in the certificates or other instruments delivered in connection
with or pursuant to this Agreement or any other Loan Document shall be
considered to have been relied upon by the other parties hereto and shall
survive the execution and delivery of the Loan Documents and the making of any
Loans and issuance of any Letters of Credit, regardless of any investigation
made by any such other party or on its behalf and notwithstanding that the
Collateral Agent, the Issuing Bank or any Lender may have had notice or
knowledge of any Default or incorrect representation or warranty at the time any
credit is extended hereunder, and shall continue in full force and effect as
long as the principal of or any accrued interest on any Loan or any fee or any
other amount payable under this Agreement is outstanding and unpaid or any
Letter of Credit is outstanding and so long as the Commitments have not expired
or terminated.

                  SECTION 7.04. Binding Effect; Several Agreement. This
Agreement shall become effective as to any Loan Party when a counterpart hereof
executed on behalf of such Loan

<PAGE>

                                                                              38

Party shall have been delivered to the Collateral Agent and a counterpart hereof
shall have been executed on behalf of the Collateral Agent, and thereafter shall
be binding upon such Loan Party and the Collateral Agent and their respective
successors and assigns, and shall inure to the benefit of such Loan Party, the
Collateral Agent and the other Secured Parties and their respective successors
and assigns, except that no Loan Party shall have the right to assign or
transfer its rights or obligations hereunder or any interest herein or in the
Collateral or Pledged Collateral (and any such assignment or transfer shall be
void) except as expressly contemplated by this Agreement or the Credit
Agreements. This Agreement shall be construed as a separate agreement with
respect to each Loan Party and may be amended, modified, supplemented, waived or
released with respect to any Loan Party without the approval of any other Loan
Party and without affecting the obligations of any other Loan Party hereunder.

                  SECTION 7.05. Successors and Assigns. Whenever in this
Agreement any of the parties hereto is referred to, such reference shall be
deemed to include the successor and assigns of such party; and all covenants,
promises and agreements by or on behalf of any Grantor or the Collateral Agent
that are contained in this Agreement shall bind and inure to the benefit of
their respective successors and assigns.

                  SECTION 7.06. Collateral Agent's Fees and Expenses;
Indemnification. (a) Each Grantor and each Pledgor jointly and severally agrees
to pay upon demand to the Collateral Agent the amount of any and all reasonable
expenses, including the reasonable fees, disbursements and other charges of its
counsel and of any experts or agents, which the Collateral Agent may incur in
connection with (i) the administration of this Agreement (including the
customary fees and charges of the Collateral Agent for any audits conducted by
it or on its behalf with respect to the Accounts Receivable or Inventory;
provided, however, that no more than one audit per calendar year may be
conducted in the absence of an Event of Default), (ii) the custody or
preservation of, or the sale of, collection from or other realization upon any
of the Collateral or Pledged Collateral, (iii) the exercise, enforcement or
protection of any of the rights of the Collateral Agent hereunder or (iv) the
failure of any Grantor or Pledgor to perform or observe any of the provisions
hereof.

                  (b) Without limitation of its indemnification obligations
under the other Loan Documents, each Grantor and each Pledgor jointly and
severally agrees to indemnify the

<PAGE>

                                                                              39

Collateral Agent and the other Indemnitees (as defined in Section 9.03 of the
Credit Agreements) against, and hold each Indemnitee harmless from, any and all
losses, claims, damages, liabilities and related expenses, including the fees,
charges and disbursements of any counsel for any Indemnitee, incurred by or
asserted against any Indemnitee arising out of, in connection with, or as a
result of, the execution, delivery or performance of this Agreement or any
claim, litigation, investigation or proceeding relating hereto or to the
Collateral or Pledged Collateral, whether or not any Indemnitee is a party
thereto; provided that such indemnity shall not, as to any Indemnitee, be
available to the extent that such losses, claims, damages, liabilities or
related expenses are determined by a court of competent jurisdiction by final
and nonappealable judgment to have resulted from the gross negligence or wilful
misconduct of such Indemnitee.

                  (c) Any such amounts payable as provided hereunder shall be
additional Obligations secured hereby and by the other Security Documents. The
provisions of this Section 7.06 shall remain operative and in full force and
effect regardless of the termination of this Agreement or any other Loan
Document, the consummation of the transactions contemplated hereby, the
repayment of any of the Obligations, the invalidity or unenforceability of any
term or provision of this Agreement or any other Loan Document, or any
investigation made by or on behalf of the Collateral Agent or any other Secured
Party. All amounts due under this Section 7.06 shall be payable on written
demand therefor.

                  SECTION 7.07. Collateral Agent Appointed Attorney-in-Fact.
Each Grantor and each Pledgor hereby appoints the Collateral Agent the
attorney-in-fact of such Grantor or Pledgor for the purpose of carrying out the
provisions of this Agreement and taking any action and executing any instrument
that the Collateral Agent may deem necessary or advisable to accomplish the
purposes hereof, which appointment is irrevocable and coupled with an interest;
provided however that such power of attorney may only be exercised (i) to file
any UCC financing statements and continuation statements and (ii) following the
occurrence and during the continuance of an Event of Default. Without limiting
the generality of the foregoing, the Collateral Agent shall have the right, upon
the occurrence and during the continuance of an Event of Default, with full
power of substitution either in the Collateral Agent's name or in the name of
such Grantor or Pledgor (a) in the case of a Grantor (i) to receive, endorse,
assign and/or deliver any and all notes,

<PAGE>

                                                                              40

acceptances, checks, drafts, money orders or other evidences of payment relating
to the Collateral or any part thereof; (ii) to demand, collect, receive payment
of, give receipt for and give discharges and releases of all or any of the
Collateral; (iii) to sign the name of any Grantor on any invoice or bill of
lading relating to any of the Collateral; (iv) to send verifications of Accounts
Receivable to any Account Debtor; (v) to commence and prosecute any and all
suits, actions or proceedings at law or in equity in any court of competent
jurisdiction to collect or otherwise realize on all or any of the Collateral or
to enforce any rights in respect of any Collateral; (vi) to settle, compromise,
compound, adjust or defend any actions, suits or proceedings relating to all or
any of the Collateral; (vii) to notify, or to require any Grantor to notify,
Account Debtors to make payment directly to the Collateral Agent; and (viii) to
use, sell, assign, transfer, pledge, make any agreement with respect to or
otherwise deal with all or any of the Collateral, and to do all other acts and
things necessary to carry out the purposes of this Agreement, as fully and
completely as though the Collateral Agent were the absolute owner of the
Collateral for all purposes; and (b) in the case of a Pledgor (i) to ask for,
demand, sue for, collect, receive and give acquittance for any and all moneys
due or to become due under and by virtue of any Pledged Collateral; (ii) to
endorse checks, drafts, orders and other instruments for the payment of money
payable to the Pledgor representing any interest or dividend or other
distribution payable in respect of the Pledged Collateral or any part thereof or
on account thereof and to give full discharge of the same; (iii) to settle,
compromise, prosecute or defend any action, claim or proceeding with respect
thereto; and (iv) to sell, assign, endorse, pledge, transfer and to make any
agreement respecting, or otherwise deal with, the same; provided, however, that
nothing herein contained shall be construed as requiring or obligating the
Collateral Agent to make any commitment or to make any inquiry as to the nature
or sufficiency of any payment received by the Collateral Agent, or to present or
file any claim or notice, or to take any action with respect to the Collateral
or the Pledged Collateral or any part thereof or the moneys due or to become due
in respect thereof or any property covered thereby. The Collateral Agent and the
other Secured Parties shall be accountable only for amounts actually received as
a result of the exercise of the powers granted to them herein, and neither they
nor their officers, directors, employees or agent shall be responsible to any
Grantor or Pledgor for any act or failure to act hereunder, except for their own
gross negligence or wilful misconduct.

<PAGE>

                                                                              41

                  SECTION 7.08. GOVERNING LAW. THIS AGREEMENT SHALL BE CONSTRUED
IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

                  SECTION 7.09. Waivers; Amendment. (a) No failure or delay by
the Collateral Agent, the Issuing Bank or any Lender in exercising any right or
power hereunder or under any other Loan Document shall operate as a waiver
thereof, nor shall any single or partial exercise of any such right or power, or
any abandonment or discontinuance of steps to enforce such a right or power,
preclude any other or further exercise thereof or the exercise of any other
right or power. The rights and remedies of the Collateral Agent, the Issuing
Bank and the Lenders hereunder and under the other Loan Documents are cumulative
and are not exclusive of any rights or remedies that they would otherwise have.
No waiver of any provision of any Loan Document or consent to any departure by
any Loan Party therefrom shall in any event be effective unless the same shall
be permitted by paragraph (b) of this Section, and then such waiver or consent
shall be effective only in the specific instance and for the purpose for which
given. Without limiting the generality of the foregoing, the making of a Loan or
issuance of a Letter of Credit shall not be construed as a waiver of any
Default, regardless of whether the Collateral Agent, any Lender or the Issuing
Bank may have had notice or knowledge of such Default at the time.

                  (b) Neither this Agreement nor any provision hereof may be
waived, amended or modified except pursuant to an agreement or agreements in
writing entered into by the Collateral Agent and the Loan Party or Loan Parties
with respect to which such waiver, amendment or modification is to apply,
subject to any consent required in accordance with Section 9.02 of the Credit
Agreements.

                  SECTION 7.10. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE
TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF
OR RELATING TO THIS AGREEMENT, ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH
PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY
OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD
NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B)
ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER
INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION.

<PAGE>

                                                                              42

                  SECTION 7.11. Severability. Any provision of this Agreement
held to be invalid, illegal or unenforceable in any jurisdiction shall, as to
such jurisdiction, be ineffective to the extent of such invalidity, illegality
or unenforceability without affecting the validity, legality and enforceability
of the remaining provisions hereof; and the invalidity of a particular provision
in a particular jurisdiction shall not invalidate such provision in any other
jurisdiction.

                  SECTION 7.12. Counterparts. This Agreement may be executed in
counterparts (and by different parties hereto on different counterparts), each
of which shall constitute a single contract (subject to Section 7.04), and shall
become effective as provided in Section 7.04. Delivery of an executed signature
page to this Agreement by telecopy shall be effective as delivery of a manually
executed counterpart of this Agreement.

                  SECTION 7.13. Headings. Article and Section headings used
herein are for the purpose of reference only, are not part of this Agreement and
are not to affect the construction of, or to be taken into consideration in
interpreting, this Agreement.

                  SECTION 7.14 Jurisdiction; Consent to Service of Process.
(a) Each of the Loan Parties hereby irrevocably and unconditionally submits, for
itself and its property, to the nonexclusive jurisdiction of the Supreme Court
of the State of New York sitting in New York County and of the United States
District Court of the Southern District of New York, and any appellate court
from any thereof, in any action or proceeding arising out of or relating to any
Loan Document, or for recognition or enforcement of any judgment, and each of
the parties hereto hereby irrevocably and unconditionally agrees that all claims
in respect of any such action or proceeding may be heard and determined in such
New York State or, to the extent permitted by law, in such Federal court. Each
of the parties hereto agrees that a final judgment in any such action or
proceeding shall be conclusive and may be enforced in other jurisdictions by
suit on the judgment or in any other manner provided by law. Nothing in this
Agreement or any other Loan Document shall affect any right that the Collateral
Agent, the Issuing Bank or any Lender may otherwise have to bring any action or
proceeding relating to this Agreement or any other Loan Document against the
Borrower or its properties in the courts of any jurisdiction.

                  (b) Each of the Loan Parties hereby irrevocably and
unconditionally waives, to the fullest extent it may

<PAGE>

                                                                              43

legally and effectively do so, any objection which it may now or hereafter have
to the laying of venue of any suit, action or proceeding arising out of or
relating to this Agreement or any other Loan Document in any court referred to
in paragraph (a) of this Section. Each of the parties hereto hereby irrevocably
waives, to the fullest extent permitted by law, the defense of an inconvenient
forum to the maintenance of such action or proceeding in any such court.

                  (c) Each party to this Agreement irrevocably consents to
service of process in the manner provided for notices in Section 7.01. Nothing
in this Agreement or any other Loan Document will affect the right of any party
to this Agreement to serve process in any other manner permitted by law.

                  SECTION 7.15. Termination or Release. (a) This Agreement, the
Guarantees, the Security Interest and all other security interests granted
hereby shall terminate when all the Obligations (other than contingent
Obligations for indemnity) have been indefeasibly paid in full and the Lenders
have no further commitment to lend under the Credit Agreements, the L/C Exposure
has been reduced to zero and the Issuing Bank has no further obligations to
issue Letters of Credit under the Revolving Credit Agreement.

                  (b) A Guarantor shall automatically be released from its
obligations hereunder and the Security Interest in the Collateral of such
Guarantor shall be automatically released in the event that all the capital
stock of such Guarantor shall be sold, transferred or otherwise disposed of to a
person that is not the Borrower or an Affiliate of the Borrower, or if such
Guarantor is dissolved, in each case in accordance with the terms of the Credit
Agreements; provided that the Required Lenders shall have consented to such
sale, transfer or other disposition (to the extent required by the Credit
Agreements) and the terms of such consent did not provide otherwise.

                  (c) Upon any sale or other transfer by any Pledgor of any
Pledged Collateral that is permitted under the Credit Agreements to any person
that is not the Borrower or an Affiliate of the Borrower, or, upon the
effectiveness of any written consent to the release of the security interest
granted hereby in any Pledged Collateral pursuant to Section 9.02 of the Credit
Agreements, the security interest in such Pledged Collateral shall be
automatically released.

                  (d)  Upon any sale or other transfer by any

<PAGE>

                                                                              44

Grantor of any Collateral that is permitted under the Credit Agreements to any
person that is not the Borrower or an Affiliate of the Borrower or to any
Securitization Vehicle whether or not an Affiliate of the Borrower (provided
that such sale or transfer is limited to sales of Inventory or Accounts to a
Securitization Vehicle that are permitted by the Credit Agreements), or, upon
the effectiveness of any written consent to the release of the security interest
granted hereby in any Collateral pursuant to Section 9.02 of the Credit
Agreements, the security interest in such Collateral shall be automatically
released.

                  (e) In connection with any termination or release pursuant to
paragraph (a), (b), (c) or (d), the Collateral Agent shall execute and deliver
to any Grantor or Pledgor, as the case may be, at such Grantor's or Pledgor's
expense, all documents that such Grantor or Pledgor shall reasonably request to
evidence such termination or release. Any execution and delivery of documents
pursuant to this Section 7.15 shall be without recourse to or warranty by the
Collateral Agent.

                  SECTION 7.16. Additional Subsidiaries. Pursuant to Section
5.12 of the Credit Agreements, each Wholly Owned Subsidiary of the Borrower that
was not in existence or not a Wholly Owned Subsidiary on the date of the Credit
Agreements, in each case other than Foreign Subsidiaries and Wholly Owned
Subsidiaries of LOL Finance, is required to enter in this Agreement (a) as a
Subsidiary Guarantor, (b) as a Grantor if such Wholly Owned Subsidiary owns or
possesses property of a type that would be considered Collateral hereunder and
(c) as a Pledgor if such Wholly Owned Subsidiary owns or possesses property of a
type that would be considered Pledged Collateral hereunder. Upon execution and
delivery by the Collateral Agent and a Wholly Owned Subsidiary of an instrument
in the form of Annex I hereto, such Wholly Owned Subsidiary shall become a Loan
Party hereunder with the same force and effect as if originally named as a Loan
Party herein. The execution and delivery of any such instrument shall not
require the consent of any Loan Party hereunder. The rights and obligations of
each Loan Party hereunder shall remain in full force and effect notwithstanding
the addition of any new Loan Party as a party to this Agreement.

<PAGE>

                                                                              45

                  IN WITNESS WHEREOF, the parties hereto have duly executed this
Agreement as of the day and year first above written.

                                       LAND O'LAKES, INC.,

                                          by   /s/ Daniel Knutson
                                               ------------------------------
                                               Name:  Daniel Knutson
                                               Title: Senior Vice President
                                                       & Chief Financial
                                                       Officer

                                       EACH OF THE SUBSIDIARIES
                                       LISTED ON SCHEDULE I HERETO,

                                          by   /s/ Daniel Knutson
                                               ------------------------------
                                               Name:  Daniel Knutson
                                               Title: Authorized Officer

                                       THE CHASE MANHATTAN BANK, as
                                       Collateral Agent,

                                          by   /s/ Robert Anastasio
                                               ------------------------------
                                               Name:  Robert Anastasio
                                               Title: Authorized Officer

<PAGE>

                                                                   Schedule I to
                                                               the Guarantee and
                                                            Collateral Agreement

                              SUBSIDIARY GUARANTORS

<PAGE>

                                                                  Schedule II to
                                                               the Guarantee and
                                                            Collateral Agreement

                                EQUITY INTERESTS

<TABLE>
<CAPTION>

                                                                      Number and
                            Number of           Registered            Class of            Percentage
        Issuer             Certificate             Owner               Shares              of Shares
        ------             -----------             -----               ------              ---------
<S>                    <C>                    <C>                  <C>                <C>

</TABLE>

                                 DEBT SECURITIES

<TABLE>
<CAPTION>
                                    Principal
          Issuer                      Amount                 Date of Note              Maturity Date
          ------                    ---------                ------------              -------------
<S>                    <C>                    <C>                  <C>                <C>

</TABLE>

<PAGE>

                                                                 Schedule III to
                                                                   Guarantee and
                                                            Collateral Agreement

                   U.S. COPYRIGHTS OWNED BY [NAME OR GRANTOR]

[Make a separate page of Schedule III for each Grantor and state if no
copyrights are owned. List in numerical order by Registration No.]

                          U.S. Copyright Registrations

<TABLE>
<CAPTION>
               Title                            Reg. No.                            Author
               -----                            --------                            ------
<S>                                      <C>                                 <C>

</TABLE>

              Pending U.S. Copyright Applications for Registration

<TABLE>
<CAPTION>
               Title                          Author                   Class              Date Filed
               -----                          ------                   -----              ----------
<S>                                      <C>                        <C>                <C>

</TABLE>

                        Non-U.S. Copyright Registrations
                        --------------------------------
            [List in alphabetical order by country/numerical order by
                      Registration No. within each country]

<TABLE>
<CAPTION>
           Country                     Title                 Reg. No.                   Author
           -------                     -----                 --------                   ------
<S>                                 <C>                    <C>                   <C>

</TABLE>

                   Non-U.S.Pending Copyright Applications for
              Registration [List in alphabetical order by country.]

<TABLE>
<CAPTION>
         Country                    Title                   Author             Class        Date Filed
         -------                    -----                   ------             -----        ----------
<S>                                 <C>                    <C>               <C>         <C>

</TABLE>

<PAGE>

                                                                    Schedule III
                                                                to Guarantee and
                                                            Collateral Agreement

                                    LICENSES

[Make a separate page of Schedule III for each Grantor, and state if any Grantor
is not a party to a license/sublicense.]

                                     PART I

                   LICENSES/SUBLICENSEES OF [NAME OF GRANTOR]
                           AS LICENSOR ON DATE HEREOF

                                  A. Copyrights

          [List U.S. copyrights in numerical order by Registration No.
         List non-U.S. copyrights by country in alphabetical order with
           Registration Nos. within each country in numerical order.]

                                 U.S. Copyrights

<TABLE>
<CAPTION>
                             Date of              Title of
     Licensee Name          License/                U.S.
     and Address           Sublicense            Copyright               Author             Reg. No.
     -----------           ----------            ---------               ------             --------
<S>                    <C>                     <C>                    <C>                 <C>

</TABLE>

                               Non-U.S. Copyrights

<TABLE>
<CAPTION>
                                          Date of            Title of
                    Licensee Name         License/           Non-U.S.
     Country         and Address        Sublicensee         Copyrights           Author        Reg. No.
     -------         -----------        -----------         ----------           ------        --------
<S>               <C>                 <C>                 <C>                 <C>           <C>

</TABLE>

                                   B. Patents

           [List U.S. patent nos. and U.S. patent application nos. in
            numerical order. List non-U.S. patent nos. and non-U.S.
               application in alphabetical order by country, with
                numbers within each country in numerical order.]

<PAGE>

                                                                    Schedule III
                                                                to Guarantee and
                                                            Collateral Agreement

                                  U.S. Patents

<TABLE>
<CAPTION>
          Licensee Name                 Date of License/
           and Address                     Sublicense               Issue Date            Patent No.
           -----------                     ----------               ----------            ----------
<S>                                   <C>                        <C>                    <C>

</TABLE>

<PAGE>

                                                                    Schedule III
                                                                to Guarantee and
                                                            Collateral Agreement

                            U.S. Patent Applications

<TABLE>
<CAPTION>
          Licensee Name                 Date of License/
          and address                     Sublicense                    Date Filed         Application No.
          -----------                     ----------                    ----------         ---------------
<S>                                <C>                              <C>                  <C>

</TABLE>

                                Non-U.S. Patents

<TABLE>
<CAPTION>
                            Licensee Name           Date of License/         Issue          Non-U.S.
       Country               and Address               Sublicense            Date          Patent No.
       -------               -----------               ----------            ----          ----------
<S>                    <C>                       <C>                    <C>              <C>

</TABLE>

                          Non-U.S. Patent Applications

<TABLE>
<CAPTION>
                            Licensee Name          Date of License/        Date          Application
       Country               and Address              Sublicense          Filed              No.
       -------               -----------              ----------          -----              ---
<S>                         <C>                        <C>                  <C>             <C>

</TABLE>

                                 C. Trademarks

        [List U.S. trademark nos. and U.S. trademark application nos. in
           numerical order. List non-U.S. trademark nos. and non-U.S.
          application nos. with trademark nos. within each country in
                               numerical order.]

                                U.S. Trademarks

<TABLE>
<CAPTION>
      Licensee Name            Date of License/
       and Address                Sublicense               U.S. Mark         Reg. Date       Reg. No.
       -----------                ----------               ---------         ---------       --------
<S>                         <C>                        <C>                  <C>             <C>

</TABLE>

<PAGE>

                                                                    Schedule III
                                                                to Guarantee and
                                                            Collateral Agreement

                          U.S. Trademark Applications

<TABLE>
<CAPTION>
      Licensee Name            Date of License/                                Date        Application
       and Address                Sublicense              U.S. Mark            Filed            No.
       -----------                ----------              ---------            -----            ---
<S>                         <C>                        <C>                   <C>           <C>

</TABLE>

                              Non-U.S. Trademarks

<TABLE>
<CAPTION>
                                           Date of
                      Licensee Name        License/          Non-U.S.
   Country             and Address        Sublicense           Mark          Reg. Date       Reg. No.
   -------             -----------        ----------           ----          ---------       --------
<S>               <C>                    <C>                <C>           <C>               <C>

</TABLE>

                        Non-U.S. Trademark Applications

<TABLE>
<CAPTION>
                                          Date of
                    Licensee Name        License/            Non-U.S.           Date         Application
    Country          and Address        Sublicense             Mark             Filed            No.
    -------          -----------        ----------             ----             -----            ---
<S>               <C>                  <C>                <C>           <C>               <C>

</TABLE>

                                    D. Others

<TABLE>
<CAPTION>
           Licensee Name                     Date of License/                        Subject
            and Address                         Sublicense                           Matter
            -----------                         ----------                           ------
<S>                                         <C>                                  <C>

</TABLE>

<PAGE>

                                                                    Schedule III
                                                                to Guarantee and
                                                            Collateral Agreement

                                     PART 2

                   LICENSEES/SUBLICENSES OF [NAME OF GRANTOR]
                           AS LICENSEE ON DATE HEREOF

                                  A. Copyrights

          [List U.S. copyrights in numerical order by Registration No.
        List non-U.S. copyrights by country in alphabetical order, with
           Registration Nos. within each country in numerical order.]

                                U.S. Copyrights

<TABLE>
<CAPTION>
    Licensor Name            Date of
         and                License/              Title of
       Address             Sublicense          U.S. Copyright               Author              Reg. No.
       -------             ----------          --------------               ------              --------
<S>                    <C>                   <C>                        <C>                  <C>

</TABLE>

                              Non-U.S. Copyrights

<TABLE>
<CAPTION>
                                           Date of           Title of
                     Licensor Name        License/           Non-U.S.
    Country           and Address        Sublicensee        Copyrights           Author        Reg. No.
    -------           -----------        -----------        ----------           ------        --------
<S>                 <C>                <C>                <C>                  <C>           <C>

</TABLE>

                                   B. Patents

           [List U.S. patent nos. and U.S. patent application nos. in
            numerical order. List non-U.S. patent nos. and non-U.S.
         application nos. in alphabetical order by country with patent
                 nos. within each country in numerical order.]

                                  U.S. Patents

<TABLE>
<CAPTION>
                                            Date of
          Licensor Name                     License/
           and Address                     Sublicense            Issue Date            Patent No.
           -----------                     ----------            ----------            ----------
<S>                                    <C>                     <C>                  <C>

</TABLE>

                            U.S. Patent Applications

<TABLE>
<CAPTION>
          Licensor Name                 Date of License/
           and Address                     Sublicense                Date Filed         Application No.
           -----------                     ----------                ----------         ---------------
<S>                                    <C>                     <C>                  <C>

</TABLE>

<PAGE>

                                                                    Schedule III
                                                                to Guarantee and
                                                            Collateral Agreement

                                Non-U.S. Patents

<TABLE>
<CAPTION>
                            Licensor Name           Date of License/         Issue          Non-U.S.
      Country                and Address               Sublicense            Date          Patent No.
      -------                -----------               ----------            ----          ----------
<S>                      <C>                     <C>                  <C>                <C>

</TABLE>

                          Non-U.S. Patent Applications

<TABLE>
<CAPTION>
                            Licensor Name           Date of License/         Date          Application
       Country               and Address               Sublicense            Filed             No.
       -------               -----------               ----------            -----             ---
<S>                      <C>                     <C>                  <C>                <C>

</TABLE>

                                  C. Trademarks

        [List U.S. trademark nos. and U.S. trademark application nos. in
           numerical order. List non-U.S. trademark nos. and non-U.S.
           application nos. with trademark nos. within each country in
                                numerical order.]

                                U.S. Trademarks

<TABLE>
<CAPTION>
      Licensor Name            Date of License/
       and Address                Sublicense              U.S. Mark         Reg. Date        Reg. No.
       -----------                ----------              ---------         ---------        --------
<S>                        <C>                     <C>                  <C>                <C>

</TABLE>

                          U.S. Trademark Applications

<TABLE>
<CAPTION>
      Licensor Name            Date of License/                               Date         Application
       and Address                Sublicense             U.S. Mark            Filed             No.
       -----------                ----------             ---------            -----             ---
<S>                        <C>                     <C>                  <C>                <C>

</TABLE>

                              Non-U.S. Trademarks

<TABLE>
<CAPTION>
                                      Date of
                Licensor Name        License/           Non-U.S.
    Country      and Address        Sublicense            Mark            Reg. Date       Reg. No.
    -------      -----------        ----------            ----            ---------       --------
<S>           <C>                 <C>                  <C>                <C>            <C>

</TABLE>

<PAGE>

                                                                    Schedule III
                                                                to Guarantee and
                                                            Collateral Agreement

                        Non-U.S. Trademark Applications

<TABLE>
<CAPTION>
                                          Date of
                    Licensor Name        License/           Non-U.S.          Date         Application
    Country          and Address        Sublicense            Mark           Filed             No.
    -------          -----------        ----------            ----           -----             ---
<S>              <C>                 <C>                  <C>               <C>            <C>

</TABLE>

                                    D. Others

<TABLE>
<CAPTION>
         Licensor Name and                   Date of License/
              Address                           Sublicense                       Subject Matter
              -------                           ----------                       --------------
<S>                                       <C>                                 <C>

</TABLE>

<PAGE>

                                                                    Schedule III
                                                                to Guarantee and
                                                            Collateral Agreement

                       PATENTS OWNED BY [NAME OF GRANTOR]

[Make a separate page of Schedule III for each Grantor and state if no patents
are owned. List in numerical order by Patent No./Patent Application No.]

                           U.S. Patent Registrations

<TABLE>
<CAPTION>
         Patent Numbers                                         Issue Date
         --------------                                         ----------
<S>                                                          <C>

</TABLE>

                            U.S. Patent Applications

<TABLE>
<CAPTION>
    Patent Application No.                                     Filing Date
    ----------------------                                     -----------
<S>                                                          <C>

</TABLE>

                         Non-U.S. Patent Registrations
           [List in alphabetical order by country/numerical order by
                        Patent No. within each country]

<TABLE>
<CAPTION>
Country                           Issue Date                         Patent No.
-------                           ----------                         ----------
<S>                        <C>                                   <C>

</TABLE>

                         Non-U.S. Patent Registrations
           [List in alphabetical order by country/numerical order by
                      Application No. within each country]

<TABLE>
<CAPTION>
Country                        Filing Date                Patent Application No.
-------                        -----------                ----------------------
<S>                        <C>                        <C>

</TABLE>

<PAGE>

                                                                    Schedule III
                                                                to Guarantee and
                                                            Collateral Agreement

                TRADEMARK/TRADE NAMES OWNED BY [NAME OF GRANTOR]

[Make a separate page of Schedule III for each Grantor and state if no
trademarks/trade names are owned. List in numerical order by trademark
registration/application no.]

                          U.S. Trademark Registrations

<TABLE>
<CAPTION>
 Mark                              Reg. Date                         Reg. No.
 ----                              ---------                         --------
<S>                        <C>                                   <C>

</TABLE>

                           U.S. Trademark Applications

<TABLE>
<CAPTION>
 Mark                             Filing Date                     Application No.
 ----                             -----------                     ---------------
<S>                        <C>                                   <C>

</TABLE>

                         State Trademark Registrations
       [List in alphabetical order by state/numerical order by trademark
                             no. within each state]

<TABLE>
<CAPTION>
State                       Mark                  Filing Date            Application No.
-----                       ----                  -----------            ---------------
<S>                        <C>                <C>                     <C>

</TABLE>

                        Non-U.S. Trademark Registrations
           [List in alphabetical order by country/numerical order by
                       trademark no. within each country]

<TABLE>
<CAPTION>
Country                        Mark                   Reg. Date                Reg. No.
-------                        ----                   ---------                --------
<S>                          <C>                  <C>                       <C>

</TABLE>

<PAGE>

                                                                    Schedule III
                                                                to Guarantee and
                                                            Collateral Agreement

                        Non-U.S. Trademark Applications
   [List in alphabetical order by country/numerical order by application no.]

<TABLE>
<CAPTION>
Country                    Mark                Application Date            Application No.
-------                    ----                ----------------            ---------------
<S>                      <C>                <C>                       <C>

</TABLE>

                                  Trade Names

<TABLE>
<CAPTION>
   Country(s) Where Used                                     Trade Names
   ---------------------                                     -----------
<S>                                                        <C>

</TABLE>

<PAGE>

                                                                  Annex I to the
                                                                   Guarantee and
                                                            Collateral Agreement

                                    SUPPLEMENT NO. __ dated as of
                                              , to the Guarantee and Collateral
                           Agreement dated as of October 11, 2001, among LAND
                           O'LAKES, INC., a Minnesota cooperative corporation
                           (the "Borrower"), [ ], each subsidiary of the
                           Borrower listed on Schedule I thereto (each such
                           subsidiary individually a "Subsidiary Party" and
                           collectively, the "Subsidiary Parties"; the
                           Subsidiary Guarantors and the Borrower are referred
                           to collectively herein as the "Grantors") and THE
                           CHASE MANHATTAN BANK, a New York banking corporation
                           ("Chase"), as collateral agent (in such capacity, the
                           "Collateral Agent") for the Secured Parties (as
                           defined herein).

                  A. Reference is made to (i) the Credit Agreement dated as of
October 11, 2001, (as amended, supplemented or otherwise modified from time to
time, the "Term Credit Agreement"), among Land O'Lakes, Inc. (the "Borrower"),
the Lenders party thereto and The Chase Manhattan Bank, as Administrative Agent
and Collateral Agent and (ii) the Amended and Restated Five-Year Credit
Agreement dated as of June 28, 1999, as amended and restated as of October 11,
2001 (as amended, supplemented or otherwise modified from time to time, the
"Revolving Credit Agreement" together with the Term Credit Agreement, the
"Credit Agreements"), among the Borrower, the Lenders party thereto, The Chase
Manhattan Bank as Collateral Agent and Cobank, ACB as Administrative Agent.

                  B. Capitalized terms used herein and not otherwise defined
herein shall have the meanings assigned to such terms in the Guarantee and
Collateral Agreement and the Credit Agreements.

                  C. The Grantors have entered into the Guarantee and Collateral
Agreement in order to induce the Lenders to make Loans and the Issuing Bank to
issue Letters of Credit. Section 7.16 of Guarantee and Collateral Agreement
provides that additional Wholly Owned Subsidiaries (other than Foreign
Subsidiaries and Wholly Owned Subsidiaries of LOL Finance) of the Borrower may
become Guarantors and Grantors under the Guarantee and Collateral Agreement by
execution and delivery of an instrument in the form of this Supplement. The
undersigned Subsidiary (the "New Loan Party") is executing this Supplement in
accordance with the requirements of the Credit Agreements to become a Guarantor
and a Grantor under the Guarantee and Collateral Agreement in order to induce
the Lenders to make additional Loans and

<PAGE>

                                                                               2

the Issuing Bank to issue additional Letters of Credit and as consideration for
Loans previously made and Letters of Credit previously issued.

                  Accordingly, the Collateral Agent and the New Loan Party agree
as follows:

                  SECTION 1. In accordance with Section 7.16 of the Guarantee
and Collateral Agreement, the New Loan Party by its signature below becomes a
Grantor, Pledgor and Guarantor under the Guarantee and Collateral Agreement with
the same force and effect as if originally named therein as a Grantor, Pledgor
and Guarantor and the New Loan Party hereby (a) agrees to all the terms and
provisions of the Guarantee and Collateral Agreement applicable to it as a
Grantor, Pledgor and Guarantor thereunder and (b) represents and warrants that
the representations and warranties made by it as a Grantor, Pledgor and
Guarantor thereunder are true and correct on and as of the date hereof. In
furtherance of the foregoing, the New Loan Party, as security for the payment
and performance in full of the Obligations (as defined in the Guarantee and
Collateral Agreement), does hereby create and grant to the Collateral Agent, its
successors and assigns, for the benefit of the Secured Parties, their successors
and assigns, a security interest in and lien on all of the New Loan Party's
right, title and interest in and to the Collateral (as defined in the Guarantee
and Collateral Agreement) of the New Loan Party. Each reference to a "Grantor"
in the Guarantee and Collateral Agreement shall be deemed to include the New
Loan Party. The Guarantee and Collateral Agreement is hereby incorporated herein
by reference.

                  SECTION 2. The New Loan Party represents and warrants to the
Collateral Agent and the other Secured Parties that this Supplement has been
duly authorized, executed and delivered by it and constitutes its legal, valid
and binding obligation, enforceable against it in accordance with its terms.

                  SECTION 3. This Supplement may be executed in counterparts
(and by different parties hereto on different counterparts), each of which shall
constitute an original, but all of which when taken together shall constitute a
single contract. This Supplement shall become effective when the Collateral
Agent shall have received counterparts of this Supplement that, when taken
together, bear the signatures of the New Loan Party and the Collateral Agent.
Delivery of an executed signature page to this Supplement by facsimile
transmission shall be as effective as delivery of a manually signed counterpart
of this Supplement.

<PAGE>

                                                                               3

                  SECTION 4. The New Loan Party hereby represents and warrants
that (a) set forth on Schedule I attached hereto is a true and correct schedule
of the location of any and all Collateral of the New Loan Party and (b) set
forth under its signature hereto, is the true and correct legal name of the New
Loan Party, its jurisdiction of formation and the location of its chief
executive office.

                  SECTION 5. Except as expressly supplemented hereby, the
Guarantee and Collateral Agreement shall remain in full force and effect.

                  SECTION 6. THIS SUPPLEMENT SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

                  SECTION 7. In case any one or more of the provisions
contained in this Supplement should be held invalid, illegal or unenforceable in
any respect, the validity, legality and enforceability of the remaining
provisions contained herein and in the Guarantee and Collateral Agreement shall
not in any way be affected or impaired thereby (it being understood that the
invalidity of a particular provision in a particular jurisdiction shall not in
and of itself affect the validity of such provision in any other jurisdiction).
The parties hereto shall endeavor in good-faith negotiations to replace the
invalid, illegal or unenforceable provisions with valid provisions the economic
effect of which comes as close as possible to that of the invalid, illegal or
unenforceable provisions.

                  SECTION 8. All communications and notices here under shall be
in writing and given as provided in Section 7.01 of the Guarantee and Collateral
Agreement. All communications and notices hereunder to the New Loan Party shall
be given to it at the address set forth under its signature below.

                  SECTION 9. The New Loan Party agrees to reimburse the
Collateral Agent for its reasonable out-of-pocket expenses in connection with
this Supplement, including the reasonable fees, other charges and disbursements
of counsel for the Collateral Agent.

                  IN WITNESS WHEREOF, the New Loan Party and the Collateral
Agent have duly executed this Supplement to the

<PAGE>

                                                                               4

Guarantee and Collateral Agreement as of the day and year first above written.

                                       [Name Of New Loan Party],

                                          by /s/ Daniel Knutson
                                            ------------------------------
                                             Name:    Daniel Knutson
                                             Title:   Senior Vice President
                                                        & Chief Financial
                                                        Officer
                                             Address:

                                       THE CHASE MANHATTAN BANK,
                                       as Collateral Agent,

                                          by  /s/ Robert Anastasio
                                            ------------------------------
                                             Name:  Robert Anastasio
                                             Title: Vice President

<PAGE>

                                                                      Schedule I
                                                     to Supplement No.___ to the
                                                                   Guarantee and
                                                            Collateral Agreement

                             LOCATION OF COLLATERAL

<TABLE>
<CAPTION>
         Description                                           Location
         -----------                                           --------
<S>                                                      <C>

</TABLE>

<PAGE>

                                                                  Schedule II to
                                                               Supplement No. __
                                                            to the Guarantee and
                                                            Collateral Agreement

                      Pledged Securities of the New Pledgor

                                EQUITY SECURITIES

<TABLE>
<CAPTION>
                                                                      Number and
                            Number of           Registered            Class of            Percentage
        Issuer             Certificate             Owner               Shares              of Shares
        ------             -----------             -----               ------              ---------
<S>                    <C>                 <C>                    <C>                   <C>

</TABLE>

                                 DEBT SECURITIES

<TABLE>
<CAPTION>
                           Principal
          Issuer             Amount                      Date of Note              Maturity Date
          ------             ------                      ------------              -------------
<S>                    <C>                          <C>                       <C>

</TABLE><PAGE>
                                                                     EXHIBIT 4.5

                                                                  EXECUTION COPY
================================================================================

                               Land O'Lakes, Inc.

                          8 3/4% Senior Notes due 2011

                                   ----------

                                    INDENTURE

                          Dated as of November 14, 2001

                                   ----------

                                 U.S. Bank N.A.,

                                   as Trustee

================================================================================

<PAGE>

                                TABLE OF CONTENTS

<TABLE>

                                                ARTICLE 1

                                Definitions and Incorporation by Reference
<S>                                                                                                    <C>
SECTION 1.01.  Definitions...............................................................................1
SECTION 1.02.  Other Definitions........................................................................25
SECTION 1.03.  Incorporation by Reference of Trust Indenture Act........................................26
SECTION 1.04.  Rules of Construction....................................................................27

                                                ARTICLE 2

                                              The Securities

SECTION 2.01.  Amount of Securities; Issuable in Series.................................................27
SECTION 2.02.  Form and Dating..........................................................................29
SECTION 2.03.  Execution and Authentication.............................................................29
SECTION 2.04.  Registrar and Paying Agent...............................................................29
SECTION 2.05.  Paying Agent to Hold Money in Trust......................................................30
SECTION 2.06.  Holder Lists.............................................................................31
SECTION 2.07.  Transfer and Exchange....................................................................31
SECTION 2.08.  Replacement Securities...................................................................32
SECTION 2.09.  Outstanding Securities...................................................................32
SECTION 2.10.  Temporary Securities.....................................................................33
SECTION 2.11.  Cancelation..............................................................................33
SECTION 2.12.  Defaulted Interest.......................................................................33
SECTION 2.13.  CUSIP and ISIN Numbers...................................................................33

                                                ARTICLE 3

                                                Redemption

SECTION 3.01.  Notices to Trustee.......................................................................34
SECTION 3.02.  Selection of Securities To Be Redeemed...................................................34
SECTION 3.03.  Notice of Redemption.....................................................................34
SECTION 3.04.  Effect of Notice of Redemption...........................................................35
SECTION 3.05.  Deposit of Redemption Price..............................................................35
SECTION 3.06.  Securities Redeemed in Part..............................................................36
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                                                ARTICLE 4

                                                Covenants
<S>                                                                                                    <C>
SECTION 4.01.  Payment of Securities....................................................................36
SECTION 4.02.  SEC Reports..............................................................................36
SECTION 4.03.  Limitation on Indebtedness...............................................................37
SECTION 4.04.  Limitation on Restricted Payments........................................................39
SECTION 4.05.  Limitation on Restrictions on Distributions from Restricted Subsidiaries.................42
SECTION 4.06.  Limitation on Sales of Assets and Subsidiary Stock.......................................43
SECTION 4.07.  Limitation on Transactions with Affiliates...............................................47
SECTION 4.08.  Change of Control........................................................................48
SECTION 4.09.  Compliance Certificate...................................................................50
SECTION 4.10.  Further Instruments and Acts.............................................................50
SECTION 4.11.  Cooperative Status.......................................................................50
SECTION 4.12.  Future Subsidiary Guarantors.............................................................50
SECTION 4.13.  Limitation on Lines of Business..........................................................50
SECTION 4.14.  Limitation on the Sale or Issuance of Capital Stock of Restricted Subsidiaries...........51
SECTION 4.15.  Limitation on Liens......................................................................51
SECTION 4.16.  Limitation on Sale/Leaseback Transactions................................................51
SECTION 4.17.  Fall-Away of Covenants...................................................................51

                                                ARTICLE 5

                                            Successor Company

SECTION 5.01.  When Company May Merge or Transfer Assets................................................52

                                                ARTICLE 6

                                          Defaults and Remedies

SECTION 6.01.  Events of Default........................................................................54
SECTION 6.02.  Acceleration.............................................................................56
SECTION 6.03.  Other Remedies...........................................................................57
SECTION 6.04.  Waiver of Past Defaults..................................................................57
SECTION 6.05.  Control by Majority......................................................................57
</TABLE>

<PAGE>

<TABLE>
<S>                                                                                                     <C>
SECTION 6.06.  Limitation on Suits......................................................................58
SECTION 6.07.  Rights of Holders to Receive Payment.....................................................58
SECTION 6.08.  Collection Suit by Trustee...............................................................58
SECTION 6.09.  Trustee May File Proofs of Claim.........................................................58
SECTION 6.10.  Priorities...............................................................................59
SECTION 6.11.  Undertaking for Costs....................................................................59
SECTION 6.12.  Waiver of Stay or Extension Laws.........................................................59

                                                ARTICLE 7

                                                 Trustee

SECTION 7.01.  Duties of Trustee........................................................................60
SECTION 7.02.  Rights of Trustee........................................................................61
SECTION 7.03.  Individual Rights of Trustee.............................................................62
SECTION 7.04.  Trustee's Disclaimer.....................................................................62
SECTION 7.05.  Notice of Defaults.......................................................................62
SECTION 7.06.  Reports by Trustee to Holders............................................................62
SECTION 7.07.  Compensation and Indemnity...............................................................63
SECTION 7.08.  Replacement of Trustee...................................................................64
SECTION 7.09.  Successor Trustee by Merger..............................................................65
SECTION 7.10.  Eligibility; Disqualification............................................................65
SECTION 7.11.  Preferential Collection of Claims Against Company........................................65

                                                ARTICLE 8

                                    Discharge of Indenture; Defeasance

SECTION 8.01.  Discharge of Liability on Securities; Defeasance.........................................65
SECTION 8.02.  Conditions to Defeasance.................................................................67
SECTION 8.03.  Application of Trust Money...............................................................68
SECTION 8.04.  Repayment to Company.....................................................................68
SECTION 8.05.  Indemnity for Government Obligations.....................................................68
SECTION 8.06.  Reinstatement............................................................................69

                                                ARTICLE 9

                                                Amendments

SECTION 9.01.  Without Consent of Holders...............................................................69
</TABLE>

<PAGE>

<TABLE>
<S>                                                                                                    <C>
SECTION 9.02.  With Consent of Holders..................................................................70
SECTION 9.03.  Compliance with Trust Indenture Act......................................................71
SECTION 9.04.  Revocation and Effect of Consents and Waivers............................................71
SECTION 9.05.  Notation on or Exchange of Securities....................................................72
SECTION 9.06.  Trustee to Sign Amendments...............................................................72
SECTION 9.07.  Payment for Consent......................................................................72

                                                ARTICLE 10

                                          Subsidiary Guarantees

SECTION 10.01.  Subsidiary Guarantees...................................................................72
SECTION 10.02.  Limitation on Liability.................................................................75
SECTION 10.03.  Successors and Assigns..................................................................76
SECTION 10.04.  No Waiver...............................................................................76
SECTION 10.05.  Modification............................................................................76
SECTION 10.06.  Execution of Supplemental Indenture for Future Subsidiary Guarantors....................76
SECTION 10.07. Non-Impairment...........................................................................76

                                                ARTICLE 11

                                              Miscellaneous

SECTION 11.01.  Trust Indenture Act Controls............................................................77
SECTION 11.02.  Notices.................................................................................77
SECTION 11.03.  Communication by Holders with Other Holders.............................................78
SECTION 11.04.  Certificate and Opinion as to Conditions Precedent......................................78
SECTION 11.05.  Statements Required in Certificate or Opinion...........................................78
SECTION 11.06.  When Securities Disregarded.............................................................79
SECTION 11.07.  Rules by Trustee, Paying Agent and Registrar............................................79
SECTION 11.08.  Legal Holidays..........................................................................79
SECTION 11.09.  GOVERNING LAW...........................................................................79
SECTION 11.10.  No Recourse Against Others..............................................................79
SECTION 11.11.  Successors..............................................................................79
SECTION 11.12.  Multiple Originals......................................................................80
SECTION 11.13.  Table of Contents; Headings.............................................................80
</TABLE>

Appendix A        -  Provisions Relating to Original Securities, Additional
                       Securities and Exchange Securities
Exhibit A         -  Form of Initial Security
Exhibit B         -  Form of Exchange Security
Exhibit C         -  Form of Supplemental Indenture
Exhibit D         -  Form of Transferee Letter of Representation

<PAGE>
                                    INDENTURE dated as of November 14, 2001,
                           among Land O'Lakes, Inc., a Minnesota cooperative
                           corporation (the "Company"), ACS Stores, L.L.C.,
                           Advanced Business Concepts International, LLC,
                           Alliance Milk Products, LLC, America's Country Stores
                           Holdings, LLC, America's Country Stores, LLC, Coastal
                           Ag-Development, Inc., Dairy Management Services,
                           L.L.P., Diamond Cross, LLC, Farbest, Inc., FMR, Inc.
                           Forage Genetics, Inc., Golden State Feeds, LLC,
                           Golden Valley Dairy Products, L.L. Olds Seed Company,
                           Land O'Lakes Farmland Feed LLC, Land O'Lakes
                           Holdings, Inc., Land O'Lakes International
                           Development Corporation, LOL Holdings II, Inc., LOL
                           Power, LLC, Mapleleaf, L.L.C, Michigan State Seed
                           Company, Milk Products, LLC, North Coast Fertilizer
                           II, Inc., Northwest Food Products Company, Inc.,
                           Northwest Food Products Transportation, LLC,
                           Nutra-Blend, LLC, PM Nutrition Company, LLC, PMI
                           Nutrition, LLC, PMI Agriculture, L.L.C., PMI
                           Nutrition International, LLC, Purina Mills, LLC, QC,
                           Inc., QC Holdings Inc., QC Industries, Inc., Realty
                           LOL, Inc., Research Seeds, Inc., Seed Research, Inc.,
                           Seedbiotics, L.L.C, Thomas Products, LLC
                           (collectively, the "Subsidiary Guarantors") and U.S.
                           Bank N.A., a national banking association, as trustee
                           (the "Trustee").

                  Each party agrees as follows for the benefit of the other
parties and for the equal and ratable benefit of the Holders of (a) the
Company's 8 3/4% Senior Notes due 2011 issued on the date hereof (the "Original
Securities"), (b) any Additional Securities (as defined herein) that may be
issued on any Issue Date (all such Securities in clauses (a) and (b) being
referred to collectively as the "Initial Securities"), and (c) if and when
issued as provided in a Registration Agreement (as defined in Appendix A hereto
(the "Appendix")), the Company's 8 3/4% Senior Notes due 2011 issued in a
Registered Exchange Offer in exchange for any Initial Securities (the "Exchange
Securities") (together with the Initial Securities, the "Securities").
$350,000,000 in aggregate principal amount of the Securities will be initially
issued on the date hereof. Subject to the conditions and in compliance with the
covenants set forth herein, the Company may issue an unlimited aggregate
principal amount of Additional Securities.

<PAGE>
                                                                               2

                                    ARTICLE 1

                   Definitions and Incorporation by Reference

                  SECTION 1.01.  Definitions.

                  "Accounts" means all Accounts (as defined in the Uniform
Commercial Code) and Account Assets with respect to such Accounts, including
those related to the dairy businesses of the Company and the Restricted
Subsidiaries and payable to such parties, including, but not limited to,
accounts receivable generated from the marketing and sale of milk, butter,
cheese, cream products, dairy and non-dairy spreads, whey, non-fat dry milk,
cocoa, and other dairy or dairy related products sold for consumer use,
licensing fees relating to dairy products and dairy related services, and the
proceeds thereof, but specifically excluding the CoBank Accounts and the Account
Assets with respect to such CoBank Accounts.

                  "Account Assets" means, collectively, with respect to Accounts
or CoBank Accounts, as the case may be, all such Accounts or CoBank Accounts,
together with (a) all right, title and interest in and to all contracts that
relate to any of such accounts; (b) all security interests or liens and property
subject thereto from time to time purporting to secure payment of any of such
accounts, whether pursuant to the contracts related to such accounts or
otherwise; (c) all UCC financing statements covering any collateral securing
payment of any of such accounts; (d) all guarantees and other agreements or
arrangements of whatever character from time to time supporting or securing
payment of any of such accounts whether pursuant to the contracts related to any
of such accounts or otherwise; (e) all interest in the merchandise, goods,
products or other property (including any that is returned), if any, the sale of
which gave rise to any of such accounts; and (f) all proceeds of the foregoing.

                  "Additional Assets" means (a) any property or assets (other
than Indebtedness and Capital Stock) to be used by the Company or a Restricted
Subsidiary in a Permitted Business; (b) any Investments in Permitted Businesses
permitted by Section 4.04; (c) the Capital Stock of a Person that becomes a
Restricted Subsidiary as a result of the acquisition of such Capital Stock by
the Company or another Restricted Subsidiary; or (d) Capital Stock constituting
a minority interest in any Person that at such time is a Restricted Subsidiary;
provided, however, that any such Restricted Subsidiary described in clauses (c)
or (d) above is primarily engaged in a Permitted Business.

                  "Additional Securities" means any 8 3/4% Senior Notes due 2011
issued under the terms of this Indenture subsequent to the Closing Date.

                  "Affiliate" of any specified Person means any other Person,
directly or indirectly, controlling or controlled by or under direct or indirect
common control with

<PAGE>
                                                                               3

such specified Person. For the purposes of this definition, "control" when used
with respect to any Person means the power to direct the management and policies
of such Person, directly or indirectly, whether through the ownership of voting
securities, by contract or otherwise; and the terms "controlling" and
"controlled" have meanings correlative to the foregoing. For purposes of
Sections 4.06 and 4.07 only, "Affiliate" shall also mean any beneficial owner of
shares representing 10% or more of the total voting power of the Voting Stock
(on a fully diluted basis) of the Company or of rights or warrants to purchase
such Voting Stock (whether or not currently exercisable) and any Person who
would be an Affiliate of any such beneficial owner pursuant to the first
sentence hereof.

                  "Agriliance" means Agriliance LLC.

                  "Asset Disposition" means any sale, lease, transfer or other
disposition (or series of related sales, leases, transfers or dispositions) by
the Company or any Restricted Subsidiary, including any disposition by means of
a merger, consolidation or similar transaction (each referred to for the
purposes of this definition as a "disposition"), of (a) any shares of Capital
Stock of a Restricted Subsidiary (other than directors' qualifying shares or
shares required by applicable law to be held by a Person other than the Company
or a Restricted Subsidiary), (b) all or substantially all the assets of any
division or line of business of the Company or any Restricted Subsidiary or (c)
any other assets of the Company or any Restricted Subsidiary outside of the
ordinary course of business of the Company or such Restricted Subsidiary (other
than, in the case of (a), (b) and (c) above, (i) a disposition by a Restricted
Subsidiary to the Company or by the Company or a Restricted Subsidiary to a
Wholly Owned Subsidiary, (ii) for purposes of Section 4.06 only, a disposition
that constitutes a Restricted Payment permitted by Section 4.04, (iii) a
disposition of assets with a Fair Market Value of less than $500,000, (iv) the
disposition of all or substantially all of the assets of the Company in a manner
permitted by Section 5.01, and (v) the sale to one or more Securitization
Vehicles of accounts receivable (including Account Assets) or inventory in
Securitizations, provided that (1) each such Securitization is effected on
market terms, (2) the aggregate amount of Third Party Securities in respect of
all such Securitizations does not exceed $200 million at any time outstanding
and (3) an amount equal to the Net Available Cash from each such Securitization
is applied to the mandatory repayment of Bank Indebtedness (notwithstanding, in
the case of the Amended and Restated Five-Year Credit Agreement referred to in
the definition of Credit Agreement, that the commitment is not required to be
reduced)). For the purposes of the foregoing clause (v), the Company and its
Restricted Subsidiaries shall be deemed at the time of any issuance by the
relevant Securitization Vehicle of Third Party Securities to have received Net
Available Cash in an amount equal to the Net Available Cash to the
Securitization Vehicle from such issuance of Third Party Securities and will not
be deemed to have received Net Available Cash in connection with ongoing sales
of accounts receivable (including Account Assets) or inventory to such
Securitization Vehicle that are purchased by it with the proceeds

<PAGE>
                                                                               4

from collections of receivables or from ordinary course sales of inventory, in
each case previously purchased by it pursuant to such Securitization.

                  "Attributable Debt" in respect of a Sale/Leaseback Transaction
means, as at the time of determination, the present value (discounted at the
interest rate borne by the Securities, compounded annually) of the total
obligations of the lessee for rental payments during the remaining term of the
lease included in such Sale/Leaseback Transaction (including any period for
which such lease has been extended).

                  "Average Life" means, as of the date of determination, with
respect to any Indebtedness or Preferred Stock, the quotient obtained by
dividing (a) the sum of the products of the numbers of years from the date of
determination to the dates of each successive scheduled principal payment of
such Indebtedness or scheduled redemption or similar payment with respect to
such Preferred Stock multiplied by the amount of such payment by (b) the sum of
all such payments.

                  "Bank Indebtedness" means any and all amounts payable under or
in respect of the Credit Agreement and any Refinancing Indebtedness with respect
thereto, as amended from time to time, including principal, premium (if any),
interest (including interest accruing on or after the filing of any petition in
bankruptcy or for reorganization relating to the Company whether or not a claim
for post-filing interest is allowed in such proceedings), fees, charges,
expenses, reimbursement obligations, guarantees and all other amounts payable
thereunder or in respect thereof. It is understood and agreed that Refinancing
Indebtedness in respect of the Credit Agreement may be Incurred from time to
time after termination of the Credit Agreement and that such Refinancing
Indebtedness will be deemed to constitute Bank Indebtedness.

                  "Board of Directors" means the Board of Directors of the
Company or any committee thereof duly authorized to act on behalf of the Board
of Directors of the Company.

                  "Business Day" means each day which is not a Legal Holiday.

                  "Capital Securities" means the trust preferred securities in
aggregate face amount of up to $200 million issued pursuant to the Indenture
dated as of March 25, 1998, between the Company and Wilmington Trust Company.

                  "Capital Stock" of any Person means any and all shares,
membership interests, limited liability company interests, rights to purchase,
warrants, options, participations or other equivalents of or interests in
(however designated) equity of such Person, including any Preferred Stock and
any cooperative membership interests or accounts, but excluding any debt
securities convertible into such equity.

<PAGE>
                                                                               5

                  "Capitalized Lease Obligations" means an obligation that is
required to be classified and accounted for as a capitalized lease for financial
reporting purposes in accordance with GAAP, and the amount of Indebtedness
represented by such obligation shall be the capitalized amount of such
obligation determined in accordance with GAAP; and the Stated Maturity thereof
shall be the date of the last payment of rent or any other amount due under such
lease prior to the first date upon which such lease may be prepaid by the lessee
without payment of a penalty.

                  "Change of Control" means the occurrence of any of the
following events:

                  (a) any "person" (as such term is used in Sections 13(d) and
         14(d) of the Exchange Act) is or becomes the beneficial owner (as
         defined in Rules 13d-3 and 13d-5 under the Exchange Act, except that
         for purposes of this clause (a) such person shall be deemed to have
         "beneficial ownership" of all shares that any such person has the right
         to acquire, whether such right is exercisable immediately or only after
         the passage of time), directly or indirectly, of more than 35% of the
         total voting power of the Voting Stock of the Company (for the purposes
         of this clause (a), any person shall be deemed to beneficially own any
         Voting Stock of an entity (the "specified entity") held by any other
         entity (the "parent entity") if such other person is the beneficial
         owner (as defined in this clause (a)), directly or indirectly, of more
         than 35% of the voting power of the Voting Stock of such parent entity;
         or

                  (b) during any period of two consecutive years, individuals
         who at the beginning of such period constituted the board of directors
         of the Company (together with any new directors whose election by such
         board of directors of the Company or whose nomination for election was
         approved by a vote of 66-2/3% of the directors of the Company then
         still in office who were either directors at the beginning of such
         period or whose election or nomination for election was previously so
         approved) cease for any reason to constitute a majority of the board of
         directors of the Company then in office;

                  (c) the adoption of a plan relating to the liquidation or
         dissolution of the Company;

                  (d) the Company fails to maintain cooperative status under
         Subchapter T of the Code or Minnesota law; or

                  (e) the merger or consolidation of the Company with or into
         another Person or the merger of another Person with or into the
         Company, or the sale of all or substantially all the assets of the
         Company to another Person, and, in the case of any such merger or
         consolidation, the securities of the Company that are outstanding
         immediately prior to such transaction and which represent 100% of

<PAGE>
                                                                               6

         the aggregate voting power of the Voting Stock of the Company are
         changed into or exchanged for cash, securities or property, unless
         pursuant to such transaction such securities are changed into or
         exchanged for, in addition to any other consideration, securities of
         the surviving Person or transferee that represent immediately after
         such transaction, at least a majority of the aggregate voting power of
         the Voting Stock of the surviving Person or transferee.

                  "Closing Date" means the date of this Indenture.

                  "CoBank" means CoBank, ACB, a federally chartered
instrumentality of the United States.

                  "CoBank Accounts" means (a) accounts related to the feed
businesses of Land O'Lakes Farmland Feed LLC and Purina Mills, LLC, its
subsidiaries and their respective successors, including, but not limited to,
accounts receivable generated from the sale of animal feed and feed ingredients,
soybean meal, premixes, non-grain protein ingredients, grains, vitamins,
minerals, branded feed products, complete feed products, milk replacer products,
feed additives, animal health products, farm supply products, toll milling
services and other feed related services and the proceeds thereof, (b) accounts
related to the seed business of the Company including, but not limited to,
accounts receivable generated from the sale of seed, licensing fees and seed
related services and the proceeds thereof, (c) accounts related to the swine
businesses of the Company, Land O'Lakes Farmland Feed LLC and Purina Mills, LLC,
its subsidiaries and their respective successors, including, but not limited to,
accounts receivable generated from the sale of swine and swine related services
and the proceeds thereof, and (d) all Account Assets related to the foregoing;
provided, however, that "CoBank Accounts" related to the swine businesses of the
Company and Land O'Lakes Farmland Feed LLC shall not include any such right to
payment where payments have been sent to a lockbox or lockbox account other than
those specified in the guarantee and collateral agreement related to the CoBank
Receivables Loan Agreement.

                  "CoBank Receivables Loan Agreement" means the Credit Agreement
dated as of October 11, 2001 between the Company and CoBank.

                  "Code" means the Internal Revenue Code of 1986, as amended.

                  "Company" means the party named as such in this Indenture
until a successor replaces it and, thereafter, means the successor and, for
purposes of any provision contained herein and required by the TIA, each other
obligor on the indenture securities.

                  "Consolidated Coverage Ratio" as of any date of determination
means the ratio of (a) the aggregate amount of EBITDA for the period of the most
recent four

<PAGE>

                                                                               7

consecutive fiscal quarters ending at least 45 days prior to the date of such
determination to (b) Consolidated Interest Expense for such four fiscal
quarters; provided, however, that (i) if the Company or any Restricted
Subsidiary has Incurred any Indebtedness since the beginning of such period that
remains outstanding on such date of determination or if the transaction giving
rise to the need to calculate the Consolidated Coverage Ratio is an Incurrence
of Indebtedness, EBITDA and Consolidated Interest Expense for such period shall
be calculated after giving effect on a pro forma basis to such Indebtedness as
if such Indebtedness had been Incurred on the first day of such period and the
discharge of any other Indebtedness repaid, repurchased, defeased or otherwise
discharged with the proceeds of such new Indebtedness as if such discharge had
occurred on the first day of such period, (ii) if the Company or any Restricted
Subsidiary has repaid, repurchased, defeased or otherwise discharged any
Indebtedness since the beginning of such period or if any Indebtedness is to be
repaid, repurchased, defeased or otherwise discharged (in each case other than
Indebtedness Incurred under any revolving credit facility unless such
Indebtedness has been permanently repaid and has not been replaced) on the date
of the transaction giving rise to the need to calculate the Consolidated
Coverage Ratio, EBITDA and Consolidated Interest Expense for such period shall
be calculated on a pro forma basis as if such discharge had occurred on the
first day of such period and as if the Company or such Restricted Subsidiary has
not earned the interest income actually earned during such period in respect of
cash or Temporary Cash Investments used to repay, repurchase, defease or
otherwise discharge such Indebtedness, (iii) if since the beginning of such
period the Company or any Restricted Subsidiary shall have made any Asset
Disposition, the EBITDA for such period shall be reduced by an amount equal to
the EBITDA (if positive) directly attributable to the assets that are the
subject of such Asset Disposition for such period or increased by an amount
equal to the EBITDA (if negative) directly attributable thereto for such period
and Consolidated Interest Expense for such period shall be reduced by an amount
equal to the Consolidated Interest Expense directly attributable to any
Indebtedness of the Company or any Restricted Subsidiary repaid, repurchased,
defeased or otherwise discharged with respect to the Company and its continuing
Restricted Subsidiaries in connection with such Asset Disposition for such
period (or, if the Capital Stock of any Restricted Subsidiary is sold, the
Consolidated Interest Expense for such period directly attributable to the
Indebtedness of such Restricted Subsidiary to the extent the Company and its
continuing Restricted Subsidiaries are no longer liable for such Indebtedness
after such sale), (iv) if since the beginning of such period the Company or any
Restricted Subsidiary (by merger or otherwise) shall have made an Investment in
any Restricted Subsidiary (or any Person that becomes a Restricted Subsidiary)
or an acquisition of assets, including any acquisition of assets occurring in
connection with a transaction causing a calculation to be made hereunder, which
constitutes all or substantially all of an operating unit of a business, EBITDA
and Consolidated Interest Expense for such period shall be calculated after
giving pro forma effect thereto (including the Incurrence of any Indebtedness)
as if such Investment or acquisition occurred on the first day of such period
and (v) if since the beginning of such period any Person (that subsequently
became a Restricted Subsidiary or
<PAGE>

                                                                               8

was merged with or into the Company or any Restricted Subsidiary since the
beginning of such period) shall have made any Asset Disposition or any
Investment or acquisition of assets that would have required an adjustment
pursuant to clause (iii) or (iv) above if made by the Company or a Restricted
Subsidiary during such period, EBITDA and Consolidated Interest Expense for such
period shall be calculated after giving pro forma effect thereto as if such
Asset Disposition, Investment or acquisition of assets occurred on the first day
of such period. For purposes of this definition, whenever pro forma effect is to
be given to an acquisition of assets or other Investment, the amount of income
or earnings relating thereto and the amount of Consolidated Interest Expense
associated with any Indebtedness Incurred in connection therewith, the pro forma
calculations shall be determined in good faith by a responsible financial or
accounting Officer of the Company and shall comply with the requirements of Rule
11-02 of Regulation S-X promulgated by the SEC. If any Indebtedness bears a
floating rate of interest and is being given pro forma effect, the interest
expense on such Indebtedness shall be calculated as if the rate in effect on the
date of determination had been the applicable rate for the entire period (taking
into account any Interest Rate Agreement applicable to such Indebtedness if such
Interest Rate Agreement has a remaining term as at the date of determination in
excess of 12 months).

                  "Consolidated Interest Expense" means, for any period, the
total interest expense of the Company and its Consolidated Restricted
Subsidiaries, plus, to the extent Incurred by the Company and its Consolidated
Restricted Subsidiaries in such period but not included in such interest
expense, without duplication (a) interest expense attributable to Capitalized
Lease Obligations and the interest expense attributable to leases constituting
part of a Sale/Leaseback Transaction, (b) amortization of debt discount and debt
issuance costs, (c) capitalized interest, (d) noncash interest expense, (e)
commissions, discounts and other fees and charges attributable to letters of
credit and bankers' acceptance financing, (f) interest accruing on any
Indebtedness of any other Person to the extent such Indebtedness is Guaranteed
by the Company or any Restricted Subsidiary, (g) net costs associated with
Hedging Obligations of interest rate and foreign currency exposure (including
amortization of fees), (h) dividends in respect of all Disqualified Stock of the
Company and all Preferred Stock of any of the Subsidiaries of the Company, to
the extent held by Persons other than the Company or a Wholly Owned Subsidiary,
(i) interest Incurred in connection with investments in discontinued operations,
(j) the cash contributions to any employee stock ownership plan or similar trust
to the extent such contributions are used by such plan or trust to pay interest
or fees to any Person (other than the Company) in connection with Indebtedness
Incurred by such plan or trust and (k) the amount of dividends paid in respect
of the Capital Securities. Notwithstanding anything to the contrary contained
herein, commissions, discounts, yield and other fees and charges Incurred in
connection with any transaction (including, without limitation, any
Securitization) pursuant to which the Company or any Subsidiary of the Company
may sell, convey or otherwise transfer or grant a security interest in any
accounts receivable or related assets or inventory or related assets of the type
specified in the definition of "Securitization" shall be included in
Consolidated Interest Expense.

<PAGE>
                                                                               9

                  "Consolidated Net Income" means, for any period, the net
income of the Company and its Consolidated Subsidiaries for such period;
provided, however, that there shall not be included in such Consolidated Net
Income:

                  (a) any net income of any Person (other than the Company) if
         such Person is not a Restricted Subsidiary;

                  (b) any net income (or loss) of any Person acquired by the
         Company or a Subsidiary of the Company in a pooling of interests
         transaction for any period prior to the date of such acquisition;

                  (c) any net income (or loss) of any Restricted Subsidiary
         (other than a Restricted Subsidiary which is a Subsidiary Guarantor on
         the Closing Date) if such Restricted Subsidiary is subject to
         restrictions, directly or indirectly, on the payment of dividends or
         the making of distributions by such Restricted Subsidiary, directly or
         indirectly, to the Company, except that (i) subject to the limitations
         contained in clause (d) below, the Company's equity in the net income
         of any such Restricted Subsidiary for such period shall be included in
         such Consolidated Net Income up to the aggregate amount of cash
         actually distributed by such Restricted Subsidiary during such period
         to the Company or another Restricted Subsidiary as a dividend or other
         distribution (subject, in the case of a dividend or other distribution
         made to another Restricted Subsidiary, to the limitation contained in
         this clause) and (ii) the Company's equity in a net loss of any such
         Restricted Subsidiary for such period shall be included in determining
         such Consolidated Net Income;

                  (d) any gain (but not loss) realized upon the sale or other
         disposition of any asset of the Company or its Consolidated
         Subsidiaries (including pursuant to any Sale/Leaseback Transaction)
         that is not sold or otherwise disposed of in the ordinary course of
         business and any gain (but not loss) realized upon the sale or other
         disposition of any Capital Stock of any Person;

                  (e) any extraordinary gain or loss;

                  (f) the cumulative effect of a change in accounting
         principles; and

                  (g) for the year ended December 31, 2001 charges and expenses
         resulting from the acquisition of Purina Mills, Inc. consisting of (i)
         up to $18.5 million of extraordinary expenses related to early
         extinguishment of debt, (ii) up to $21.0 million of non-cash accruals
         for plant writedowns and (iii) up to $5.1 million of expenses related
         to the cancellation of an interest rate swap of Purina Mills, Inc.

<PAGE>
                                                                              10

Notwithstanding the foregoing, for the purposes of Section 4.04 only, there
shall be excluded from Consolidated Net Income any dividends, repayments of
loans or advances or other transfers or distributions of cash or other assets
from Unrestricted Subsidiaries to the Company or a Restricted Subsidiary to the
extent such dividends, repayments or transfers increase the amount of Restricted
Payments permitted under such Section pursuant to clause (a) (iv)(3)(D) or (E)
thereof.

                  "Consolidated Net Worth" means the total of the amounts shown
on the balance sheet of the Company and its Restricted Subsidiaries, determined
on a Consolidated basis, as of the end of the most recent fiscal quarter of the
Company ending at least 45 days prior to the taking of any action for the
purpose of which the determination is being made, as (a) the par or stated value
of all outstanding Capital Stock of the Company plus (b) member equity relating
to such Capital Stock plus (c) any retained earnings or earned surplus less (i)
any accumulated deficit and (ii) any amounts attributable to Disqualified Stock.

                  "Consolidation" means the consolidation of the accounts of
each of the Restricted Subsidiaries with those of the Company in accordance with
GAAP consistently applied; provided, however, that "Consolidation" shall not
include consolidation of the accounts of any Unrestricted Subsidiary, but the
interest of the Company or any Restricted Subsidiary in an Unrestricted
Subsidiary shall be accounted for as an investment. The term "Consolidated" has
a correlative meaning.

                  "Credit Agreement" means, collectively, (a) the Credit
Agreement dated as of October 11, 2001, among the Company, The Chase Manhattan
Bank, as administrative agent, and the lenders party thereto, (b) the Amended
and Restated Five-Year Credit Agreement dated as of October 11, 2001, among the
Company, the lenders party thereto, and The Chase Manhattan Bank, as
administrative agent, and (c) the CoBank Receivables Loan Agreement, each as
amended, restated, supplemented, waived, replaced (whether or not upon
termination, and whether with the original lenders or otherwise), refinanced,
restructured or otherwise modified from time to time (except to the extent that
any such amendment, restatement, supplement, waiver, replacement, refinancing,
restructuring or other modification thereto would be prohibited by the terms of
this Indenture, unless otherwise agreed to by the Holders of at least a majority
in aggregate principal amount of Securities at the time outstanding).

                  "Default" means any event which is, or after notice or passage
of time or both would be, an Event of Default.

                  "Designated Noncash Consideration" means the Fair Market Value
of noncash consideration received by the Company or one of its Restricted
Subsidiaries in connection with an Asset Disposition that is so designated as
Designated Noncash

<PAGE>

                                                                              11

Consideration pursuant to an Officers' Certificate, setting forth the basis of
such valuation.

                  "Disqualified Stock" means, with respect to any Person, any
Capital Stock which by its terms (or by the terms of any security into which it
is convertible or for which it is exchangeable or exercisable) or upon the
happening of any event (a) matures or is mandatorily redeemable pursuant to a
sinking fund obligation or otherwise, (b) is convertible or exchangeable for
Indebtedness or Disqualified Stock (excluding Capital Stock convertible or
exchangeable solely at the option of the Company or a Restricted Subsidiary;
provided, however, that any such conversion or exchange shall be deemed an
Incurrence of Indebtedness or Disqualified Stock, as applicable) or (c) is
redeemable at the option of the holder thereof, in whole or in part, in the case
of each of clauses (a), (b) and (c) on or prior to 91 days following the Stated
Maturity of the Securities; provided, however, that any Capital Stock that would
not constitute Disqualified Stock but for provisions thereof giving holders
thereof the right to require such Person to repurchase or redeem such Capital
Stock upon the occurrence of an "asset sale" or "change of control" occurring
prior to 91 days following the Stated Maturity of the Securities shall not
constitute Disqualified Stock if the "asset sale" or "change of control"
provisions applicable to such Capital Stock are not more favorable to the
holders of such Capital Stock than the provisions of Sections 4.06 and 4.08.

                  "Domestic Subsidiary" means any Restricted Subsidiary of the
Company other than a Foreign Subsidiary.

                  "EBITDA" for any period means the Consolidated Net Income for
such period, plus, without duplication, the following to the extent deducted in
calculating such Consolidated Net Income: (a) income tax expense of the Company
and its Consolidated Restricted Subsidiaries, (b) Consolidated Interest Expense,
(c) depreciation expense of the Company and its Consolidated Restricted
Subsidiaries, (d) amortization expense of the Company and its Consolidated
Restricted Subsidiaries (excluding amortization expense attributable to a
prepaid cash item that was paid in a prior period), (e) all other noncash
charges of the Company and its Consolidated Restricted Subsidiaries (excluding
any such noncash charge to the extent that it represents an accrual of or
reserve for cash expenditures in any future period) less all non-cash items of
income of the Company and its Consolidated Restricted Subsidiaries, and (f) up
to $20.0 million of cash severance costs incurred in 2001 and 2002 in connection
with plant closings resulting from the acquisition of Purina Mills, Inc., in
each case for such period. Notwithstanding the foregoing, the provision for
taxes based on the income or profits of, and the depreciation and amortization
and noncash charges of, a Restricted Subsidiary of the Company shall be added to
Consolidated Net Income to compute EBITDA only to the extent (and in the same
proportion) that the net income of such Restricted Subsidiary was included in
calculating Consolidated Net Income and, except for Restricted Subsidiaries
which are Subsidiary Guarantors on the Closing Date, only if a corresponding
amount would be

<PAGE>

                                                                              12

permitted at the date of determination to be dividended to the Company by
such Restricted Subsidiary without prior approval (that has not been obtained),
pursuant to the terms of its charter and all agreements, instruments, judgments,
decrees, orders, statutes, rules and governmental regulations applicable to such
Restricted Subsidiary or its stockholders.

                  "Exchange Act" means the Securities Exchange Act of 1934.

                  "Fair Market Value" means, with respect to any asset or
property, the price which could be negotiated in an arm's-length, free market
transaction, for cash, between a willing seller and a willing and able buyer,
neither of whom is under undue pressure or compulsion to complete the
transaction. For all purposes of this Indenture, Fair Market Value of property
or assets with a value of $10 million or greater will be determined in good
faith by the Board of Directors, whose determination will be conclusive and
evidenced by a resolution of the Board of Directors.

                  "Foreign Subsidiary" means any Restricted Subsidiary of the
Company that is not organized under the laws of the United States of America or
any State thereof or the District of Columbia.

                  "GAAP" means generally accepted accounting principles in the
United States of America as in effect as of the Closing Date, including those
set forth in (a) the opinions and pronouncements of the Accounting Principles
Board of the American Institute of Certified Public Accountants, (b) statements
and pronouncements of the Financial Accounting Standards Board and (c) such
other statements by such other entities as approved by a significant segment of
the accounting profession. All ratios and computations based on GAAP contained
in this Indenture shall be computed in conformity with GAAP.

                  "Guarantee" means any obligation, contingent or otherwise, of
any Person directly or indirectly guaranteeing any Indebtedness or other
obligation of any other Person and any obligation, direct or indirect,
contingent or otherwise, of such Person (a) to purchase or pay (or advance or
supply funds for the purchase or payment of) such Indebtedness or other
obligation of such other Person (whether arising by virtue of partnership
arrangements, or by agreement to keep-well, to purchase assets, goods,
securities or services, to take-or-pay, or to maintain financial statement
conditions or otherwise) or (b) entered into for purposes of assuring in any
other manner the obligee of such Indebtedness or other obligation of the payment
thereof or to protect such obligee against loss in respect thereof (in whole or
in part); provided, however, that the term "Guarantee" shall not include
endorsements for collection or deposit in the ordinary course of business. The
term "Guarantee" used as a verb has a corresponding meaning. The term
"Guarantor" shall mean any Person Guaranteeing any obligation.

<PAGE>
                                                                              13

                  "Hedging Obligations" means, with respect to any Person, the
obligations of such Person under (a) currency exchange, interest rate or
commodity swap agreements, currency exchange, interest rate or commodity cap
agreements and currency exchange, interest rate or commodity collar agreements
and (b) other agreements or arrangements designed to protect such Person against
fluctuations in currency exchange, interest rates or commodity prices.

                  "Holder" means the Person in whose name a Security is
registered on the Registrar's books.

                  "Incur" means issue, assume, Guarantee, incur or otherwise
become liable for; provided, however, that any Indebtedness or Capital Stock of
a Person existing at the time such Person becomes a Subsidiary (whether by
merger, consolidation, acquisition or otherwise) shall be deemed to be Incurred
by such Person at the time it becomes a Subsidiary. The term "Incurrence" when
used as a noun shall have a correlative meaning. The accretion of principal of a
non-interest bearing or other discount security shall not be deemed the
Incurrence of Indebtedness.

                  "Indebtedness" means, with respect to any Person on any date
of determination, without duplication:

                  (a) the principal of and premium (if any) in respect of
         indebtedness of such Person for borrowed money;

                  (b) the principal of and premium (if any) in respect of
         obligations of such Person evidenced by bonds, debentures, notes or
         other similar instruments;

                  (c) all obligations of such Person in respect of letters of
         credit or other similar instruments (including reimbursement
         obligations with respect thereto);

                  (d) all obligations of such Person to pay the deferred and
         unpaid purchase price of property or services (except Trade Payables),
         which purchase price is due more than six months after the date of
         placing such property in service or taking delivery and title thereto
         or the completion of such services;

                  (e) all Capitalized Lease Obligations and all Attributable
         Debt of such Person;

                  (f) the amount of all obligations of such Person with respect
         to the redemption, repayment or other repurchase of any Disqualified
         Stock or, with respect to any Subsidiary of such Person, any Preferred
         Stock (but excluding, in each case, any accrued dividends);

<PAGE>
                                                                              14

                  (g) all Indebtedness of other Persons secured by a Lien on any
         asset of such Person, whether or not such Indebtedness is assumed by
         such Person; provided, however, that the amount of Indebtedness of such
         Person shall be the lesser of (i) the Fair Market Value of such asset
         at such date of determination and (ii) the amount of such Indebtedness
         of such other Persons;

                  (h) Hedging Obligations of such Person;

                  (i) all obligations in respect of Third Party Securities
         issued by such Person in Securitizations (regardless of whether
         denominated as equity or debt securities); and

                  (j) all obligations of the type referred to in clauses (a)
         through (i) of other Persons and all dividends of other Persons for the
         payment of which, in either case, such Person is responsible or liable,
         directly or indirectly, as obligor, guarantor or otherwise, including
         by means of any Guarantee.

The amount of Indebtedness of any Person at any date shall be the outstanding
balance at such date of all unconditional obligations as described above and the
maximum liability, upon the occurrence of the contingency giving rise to the
obligation, of any contingent obligations at such date.

                  "Indenture" means this Indenture as amended or supplemented
from time to time.

                  "Interest Rate Agreement" means with respect to any Person any
interest rate protection agreement, interest rate future agreement, interest
rate option agreement, interest rate swap agreement, interest rate cap
agreement, interest rate collar agreement, interest rate hedge agreement or
other similar agreement or arrangement to which such Person is party or of which
it is a beneficiary.

                  "Investment" in any Person means any direct or indirect
advance, loan (other than advances to customers in the ordinary course of
business that are recorded as accounts receivable on the balance sheet of the
lender) or other extension of credit (including by way of Guarantee or similar
arrangement) or capital contribution to (by means of any transfer of cash or
other property to others or any payment for property or services for the account
or use of others), or any purchase or acquisition of Capital Stock, Indebtedness
or other similar instruments issued by such Person. For purposes of the
definition of "Unrestricted Subsidiary" and Section 4.04, (a) "Investment" shall
include the portion (proportionate to the Company's equity interest in such
Subsidiary) of the Fair Market Value of the net assets of any Subsidiary of the
Company at the time that such Subsidiary is designated an Unrestricted
Subsidiary; provided, however, that upon a redesignation of such Subsidiary as a
Restricted Subsidiary, the Company shall be

<PAGE>

                                                                              15

deemed to continue to have a permanent "Investment" in an Unrestricted
Subsidiary in an amount (if positive) equal to (i) the Company's "Investment" in
such Subsidiary at the time of such redesignation less (ii) the portion
(proportionate to the Company's equity interest in such Subsidiary) of the Fair
Market Value of the net assets of such Subsidiary at the time of such
redesignation; and (b) any property transferred to or from an Unrestricted
Subsidiary shall be valued at its Fair Market Value at the time of such
transfer.

                  "Investment Grade" means (a) with respect to S&P, any of the
rating categories from and including AAA to and including BBB-; and (b) with
respect to Moody's, any of the rating categories from and including Aaa to and
including Baa3.

                  "Issue Date" , with respect to any Initial Securities, means
the date on which such Initial Securities are originally issued.

                  "Legal Holiday" means a Saturday, Sunday or other day on which
banking institutions are not required by law or regulation to be open in the
State of New York.

                  "Lien" means any mortgage, pledge, security interest,
encumbrance, lien or charge of any kind (including any conditional sale or other
title retention agreement or lease in the nature thereof).

                  "LOL Finance" means LOL Finance Co., a wholly-owned Subsidiary
of the Company.

                  "Member" means a holder of the Company's Class A, Class B,
Class C or Class D common stock.

                  "Minimum Patronage Amount" means, the minimum amount required
to be paid in money or by qualified check under Section 1388 of the Code for the
allocation to be a "qualified written notice of allocation", which currently
means, with respect to a Member, 20% of the Patronage allocated to such Member
in a given year.

                  "MoArk" means MoArk, LLC.

                  "Moody's" means Moody's Investors Service, Inc.

                  "Net Available Cash" from an Asset Disposition means cash
payments received (including any cash payments received by way of deferred
payment of principal pursuant to a note or installment receivable or otherwise
and proceeds from the sale or other disposition of any securities received as
consideration, but only as and when received, but excluding any other
consideration received in the form of assumption by the acquiring Person of
Indebtedness or other obligations relating to the properties or assets

<PAGE>

                                                                              16

that are the subject of such Asset Disposition or received in any other non-cash
form) therefrom, in each case net of (a) all legal, title and recording tax
expenses, commissions and other fees and expenses incurred, and all Federal,
state, provincial, foreign and local taxes required to be paid or accrued as a
liability under GAAP, as a consequence of such Asset Disposition, (b) all
payments made on any Indebtedness which is secured by any assets subject to such
Asset Disposition, in accordance with the terms of any Lien upon or other
security agreement of any kind with respect to such assets, or which must by its
terms, or in order to obtain a necessary consent to such Asset Disposition, or
by applicable law be repaid out of the proceeds from such Asset Disposition, (c)
all distributions and other payments required to be made to minority interest
holders in Subsidiaries or joint ventures as a result of such Asset Disposition
and (d) appropriate amounts to be provided by the seller as a reserve, in
accordance with GAAP, against any liabilities associated with the property or
other assets disposed of in such Asset Disposition and retained by the Company
or any Restricted Subsidiary after such Asset Disposition.

                  "Net Cash Proceeds", with respect to any issuance or sale of
Capital Stock, means the cash proceeds of such issuance or sale net of
attorneys' fees, accountants' fees, underwriters' or placement agents' fees,
discounts or commissions and brokerage, consultant and other fees actually
incurred in connection with such issuance or sale and net of taxes paid or
payable as a result thereof.

                  "Officer" means the Chairman of the Board, the Chief Executive
Officer, the Chief Financial Officer, the President, any Vice President, the
Treasurer, the Secretary or the Assistant Secretary of the Company. "Officer" of
a Subsidiary Guarantor has a correlative meaning.

                  "Officers' Certificate" means a certificate signed by two
Officers.

                  "Opinion of Counsel" means a written opinion from legal
counsel who is reasonably acceptable to the Trustee. The counsel may be an
employee of or counsel to the Company, a Subsidiary Guarantor or the Trustee.

                  "Patronage" means any earnings of the Company and Company's
Subsidiaries returned to Members, either directly or indirectly, based on
business conducted with such Members, including any "Patronage Dividends",
"Per-Unit Retain Allocations", "Qualified Per-Unit Retain Certificates", or
"Non-Qualified Per-Unit Retain Certificates", as such are defined in Sub-chapter
T of the Code, as well as any other redemptions or revolvement payments to
Members.

                  "Permitted Business" means any business engaged in by the
Company or any Restricted Subsidiary on the Closing Date and any Related
Business.

<PAGE>
                                                                              17

                  "Permitted Investment" means an Investment by the Company or
any Restricted Subsidiary in (a) the Company, a Restricted Subsidiary or a
Person that will, upon the making of such Investment, become a Restricted
Subsidiary; provided, however, that the primary business of such Restricted
Subsidiary is a Permitted Business; (b) another Person if as a result of such
Investment such other Person is merged or consolidated with or into, or
transfers or conveys all or substantially all its assets to, the Company or a
Restricted Subsidiary; provided, however, that such Person's primary business is
a Permitted Business; (c) Temporary Cash Investments; (d) receivables owing to
the Company or any Restricted Subsidiary if created or acquired in the ordinary
course of business and payable or dischargeable in accordance with customary
trade terms; provided, however, that such trade terms may include such
concessionary trade terms as the Company or any such Restricted Subsidiary deems
reasonable under the circumstances; (e) payroll, travel and similar advances to
cover matters that are expected at the time of such advances ultimately to be
treated as expenses for accounting purposes and that are made in the ordinary
course of business; (f) loans or advances to employees made in the ordinary
course of business consistent with past practices of the Company or such
Restricted Subsidiary and not exceeding $5 million in the aggregate outstanding
at any one time; provided that the repayments of such loans or advances shall
not increase the amount of Restricted Payments permitted to be made under
Section 4.04 (a)(iv)(3)(D) or (E); (g) any Person to the extent such Investment
represents the non-cash portion of the consideration received for an Asset
Disposition that was made pursuant to and in compliance with Section 4.06; (h)
Sellers' Retained Interests in Securitizations permitted by Section 4.03 and
Section 4.06; (i) Capital Stock of CoBank required to be made in accordance with
CoBank's bylaws and capital plans applicable to cooperative borrowers generally;
(j) any Persons received in connection with the bankruptcy or reorganization of,
or settlement of delinquent accounts and disputes with, customers and suppliers,
in each case in the ordinary course of business or received in satisfaction of
judgments; (k) loans to Agriliance and MoArk in the ordinary course of business
for cash management purposes in an aggregate principal amount not to exceed $20
million outstanding at any time, which loans shall not be outstanding for more
than 30 days; provided that the repayments of such loans shall not increase the
amount of Restricted Payments permitted to be made under Section
4.04(a)(iv)(3)(D) or (E); (l) loans to LOL Finance in an aggregate principal
amount not to exceed $45 million outstanding at any time, it being understood
that approximately $29.9 million is outstanding on the Closing Date; provided
that the repayments of such loans shall not increase the amount of Restricted
Payments permitted to be made under Section 4.04(a)(iv)(3)(D) or (E); and (m)
any Person in an aggregate amount not to exceed $20 million at any time
outstanding.

                  "Permitted Liens" means, with respect to any Person, (a)
pledges or deposits by such Person under worker's compensation laws,
unemployment insurance laws or similar legislation, or good faith deposits in
connection with bids, tenders, contracts (other than for the payment of
Indebtedness) or leases to which such Person is a party, or deposits to secure
public or statutory obligations of such Person or deposits of

<PAGE>

                                                                              18

cash or United States government bonds to secure surety or appeal bonds to which
such Person is a party, or deposits as security for contested taxes or import
duties or for the payment of rent, in each case Incurred in the ordinary course
of business; (b) Liens imposed by law, such as carriers', warehousemen's,
mechanics', materialmen's, repairmen's and other like liens imposed by law and
arising in the ordinary course of business, in each case for sums not overdue by
more than 30 days or being contested in good faith by appropriate proceedings or
other Liens arising out of judgments or awards against such Person with respect
to which such Person shall then be proceeding with an appeal or other
proceedings for review; (c) Liens for taxes, assessments or other governmental
charges not yet due or payable or subject to penalties for non-payment or which
are being contested in good faith by appropriate proceedings; (d) deposits to
secure the performance of bids, trade contracts, leases, statutory obligations,
surety and appeal bonds, performance bonds and other obligations of a like
nature, in each case in the ordinary course of business; (e) easements, zoning
restrictions, rights-of-way and similar encumbrances on real property imposed by
law or arising in the ordinary course of business that do not secure any
monetary obligations and do not materially adversely affect the value of the
property, taken as a whole, or interfere with the ordinary conduct of business
of the Company or any Restricted Subsidiary; (f) Liens securing Indebtedness
Incurred to finance the construction, purchase or lease of, or repairs,
improvements or additions to, property of such Person; provided, however, that
the Lien may not extend to any other property owned by such Person or any of its
Subsidiaries at the time the Lien is Incurred, and the Indebtedness (other than
any interest thereon) secured by the Lien may not be Incurred more than 180 days
after the later of the acquisition, completion of construction, repair,
improvement, addition or commencement of full operation of the property subject
to the Lien; (g) Liens to secure Bank Indebtedness (i) prior to the Fall-Away
Date, permitted by Section 4.03(b)(i) and (ii) following the Fall-Away Date, in
an aggregate principal amount not to exceed the amount of Bank Indebtedness
permitted by Section 4.03(b)(i) on the Fall-Away Date; (h) Liens existing on the
Closing Date; (i) Liens on property or shares of stock of another Person at the
time such other Person becomes a Subsidiary of such Person; provided, however,
that such Liens are not created, Incurred or assumed in connection with, or in
contemplation of, such other Person becoming such a Subsidiary; provided
further, however, that such Liens do not extend to any other property owned by
such Person or any of its Subsidiaries; (j) Liens on property at the time such
Person or any of its Subsidiaries acquires the property, including any
acquisition by means of a merger or consolidation with or into such Person or
any Subsidiary of such Person; provided, however, that such Liens are not
created, Incurred or assumed in connection with, or in contemplation of, such
acquisition; provided further, however, that the Liens may not extend to any
other property owned by such Person or any of its Subsidiaries; (k) Liens
securing Indebtedness or other obligations of (i) a Subsidiary of such Person
owing to such Person or a wholly owned Subsidiary of such Person or (ii) of such
Person owing to a wholly owned Subsidiary of such Person; (l) Liens securing
obligations under Interest Rate Agreements so long as such obligations relate to
Indebtedness that is, and is permitted under this Indenture to be, secured by a

<PAGE>

                                                                              19

Lien on the same property securing such obligations; (m) Liens on Sellers'
Retained Interests Incurred in connection with Securitizations permitted under
this Indenture (other than Section 4.15 hereof) securing obligations in respect
of Third Party Securities in an aggregate amount at any time outstanding not in
excess of $200 million less the aggregate principal amount of Indebtedness under
the CoBank Receivables Loan Agreement; provided, however, that recourse to such
Sellers' Retained Interests is limited in a manner customary for similar
securitization transactions and the ratio of the amount of such Sellers'
Retained Interests to the amount of such Third Party Securities is not
significantly greater than the ratio of Sellers' Retained Interests to the
financed portion of assets in similar securitization transactions; (n) Liens on
assets of Restricted Subsidiaries that are Securitization Vehicles securing
Indebtedness of such Securitization Vehicles provided that prior to the
Fall-Away Date such Indebtedness is permitted by Section 4.03 (b)(viii); (o)
judgment liens in respect of judgments that do not constitute an Event of
Default; (p) Liens of CoBank on investments by the Company in the stock,
participation certificates, or allocated reserves of CoBank owned by the
Company; (q) Liens to secure any Refinancing (or successive Refinancings) as a
whole, or in part, of any Indebtedness secured by any Lien referred to in the
foregoing clauses (f), (h), (i) and (j); provided, however, that (i) such new
Lien shall be limited to all or part of the same property that secured the
original Lien (plus improvements to or on such property) and (ii) the
Indebtedness secured by such Lien at such time is not increased to any amount
greater than the sum of (1) the outstanding principal amount or, if greater,
committed amount of the Indebtedness secured by Liens described under clauses
(f), (h), (i) or (j) at the time the original Lien became a Permitted Lien under
this Indenture and (2) an amount necessary to pay any fees and expenses,
including premiums, related to such Refinancings; and (r) Liens not expressly
permitted by clauses (a) through (q) above; provided that the aggregate
principal amount of Indebtedness secured by Liens permitted by this clause (r)
(including Attributable Debt permitted by the covenant described under Section
4.16 and Section 4.03 (b)(vii)) does not at any time exceed $75 million.

                  "Person" means any individual, corporation, partnership,
limited liability company, joint venture, association, joint-stock company,
trust, unincorporated organization, government or any agency or political
subdivision thereof or any other entity.

                  "Preferred Stock", as applied to the Capital Stock of any
Person, means Capital Stock of any class or classes (however designated) that is
preferred as to the payment of dividends, or as to the distribution of assets
upon any voluntary or involuntary liquidation or dissolution of such Person,
over shares of Capital Stock of any other class of such Person.

                  "principal" of a Security means the principal of the Security
plus the premium, if any, payable on the Security which is due or overdue or is
to become due at the relevant time.

<PAGE>
                                                                              20

                  "Purchase Money Indebtedness" means Indebtedness (a)
consisting of the deferred purchase price of an asset, conditional sale
obligations, obligations under any title retention agreement and other purchase
money obligations, in each case where the maturity of such Indebtedness does not
exceed the anticipated useful life of the asset being financed, and (b) Incurred
to finance the acquisition by the Company or a Restricted Subsidiary of such
asset, including additions and improvements; provided, however, that such
Indebtedness is incurred within 180 days after the acquisition by the Company or
such Restricted Subsidiary of such asset.

                  "Ratings Agency" shall mean Moody's or S&P.

                  "Refinance" means, in respect of any Indebtedness, to
refinance, extend, renew, refund, repay, prepay, redeem, defease or retire, or
to issue other Indebtedness in exchange or replacement for, such Indebtedness.
"Refinanced" and "Refinancing" shall have correlative meanings.

                  "Refinancing Indebtedness" means Indebtedness that is Incurred
to refund, refinance, replace, renew, repay or extend (including pursuant to any
defeasance or discharge mechanism) any Indebtedness of the Company or any
Restricted Subsidiary existing on the Closing Date or Incurred in compliance
with this Indenture including Indebtedness of the Company that Refinances
Refinancing Indebtedness; provided, however, that (a) the Refinancing
Indebtedness has a Stated Maturity either (i) no earlier than the Stated
Maturity of the Indebtedness being Refinanced or (ii) at least 91 days after the
Stated Maturity of the Securities, (b) the Refinancing Indebtedness has an
Average Life at the time such Refinancing Indebtedness is Incurred that is equal
to or greater than the Average Life of the Indebtedness being Refinanced, (c)
such Refinancing Indebtedness is Incurred in an aggregate principal amount (or
if issued with original issue discount, an aggregate issue price) that is equal
to or less than the aggregate principal amount (or if issued with original issue
discount, the aggregate accreted value) then outstanding of the Indebtedness
being Refinanced and (d) if the Indebtedness being Refinanced is subordinated in
right of payment to the Securities, such Refinancing Indebtedness is
subordinated in right of payment to the Securities at least to the same extent
as the Indebtedness being Refinanced; provided further, however, that
Refinancing Indebtedness shall not include (i) Indebtedness of a Restricted
Subsidiary that is not a Subsidiary Guarantor that Refinances Indebtedness of
the Company or (ii) Indebtedness of the Company or a Restricted Subsidiary that
Refinances Indebtedness of an Unrestricted Subsidiary.

                  "Related Business" means any business related, ancillary or
complementary to the businesses of the Company and the Restricted Subsidiaries
on the Closing Date.
<PAGE>
                                                                              21

                  "Restricted Subsidiary" means any Subsidiary of the Company
other than an Unrestricted Subsidiary.

                  "Sale/Leaseback Transaction" means an arrangement relating to
property now owned or hereafter acquired by the Company or a Restricted
Subsidiary whereby the Company or a Restricted Subsidiary transfers such
property to a Person and the Company or such Restricted Subsidiary leases it
from such Person, other than leases between the Company and a Subsidiary
Guarantor or between Subsidiary Guarantors.

                  "SEC" means the Securities and Exchange Commission.

                  "Secured Indebtedness" means any Indebtedness of the Company
secured by a Lien. "Secured Indebtedness" of a Subsidiary Guarantor has a
correlative meaning.

                  "Securities" means the Securities issued under this Indenture.

                  "Securities Act" means the Securities Act of 1933.

                  "Securitization" means the transfer and sale by the Company or
a Restricted Subsidiary of accounts receivable (including Account Assets) or
inventory to a Securitization Vehicle, which Securitization Vehicle finances the
acquisition of such assets (a) with proceeds from the issuance of Third Party
Securities, (b) with Sellers' Retained Interests and (c) with proceeds from the
sale or collection of accounts receivable (including Account Assets) or
inventory previously purchased by such Securitization Vehicle.

                  "Securitization Vehicle" means a special purpose trust,
partnership, limited liability company or similar entity formed at the direction
of the Company for the purpose of effecting one or more Securitizations which,
in connection therewith, issues Third Party Securities.

                  "Sellers' Retained Interests" means the debt or equity
interests held by the Company or any Restricted Subsidiary in a Securitization
Vehicle to which accounts receivable (including Account Assets) or inventory of
the Company and the Restricted Subsidiaries have been transferred in a
Securitization, including any such debt or equity received in consideration for
the assets transferred.

                  "Senior Indebtedness" of the Company or any Subsidiary
Guarantor means the principal of, premium (if any) and accrued and unpaid
interest on (including interest accruing on or after the filing of any petition
in bankruptcy or for reorganization of the Company or any Subsidiary Guarantor,
regardless of whether or not a claim for post- filing interest is allowed in
such proceedings) and fees and other amounts owing in respect of, Bank
Indebtedness and all other Indebtedness of the Company or any

<PAGE>
                                                                              22

Subsidiary Guarantor, as applicable, whether outstanding on the Closing Date or
thereafter Incurred, unless in the instrument creating or evidencing the same or
pursuant to which the same is outstanding it is provided that such obligations
are subordinated in right of payment to the Securities or such Subsidiary
Guarantor's Subsidiary Guarantee; provided, however, that Senior Indebtedness of
the Company or any Subsidiary Guarantor shall not include (a) any obligation of
the Company to any Subsidiary of the Company or of such Subsidiary Guarantor to
the Company or any other Subsidiary of the Company, (b) any liability for
Federal, state, local or other taxes owed or owing by the Company or such
Subsidiary Guarantor, as applicable, including any Subordinated Obligations of
the Company or such Subsidiary Guarantor, as applicable, (c) any accounts
payable or other liability to trade creditors arising in the ordinary course of
business (including Guarantees thereof or instruments evidencing such
liabilities), (d) any Indebtedness or obligation of the Company or such
Subsidiary Guarantor (and any accrued and unpaid interest in respect thereof)
that by its terms is subordinate or junior in any respect to any other
Indebtedness or obligation of the Company or such Subsidiary Guarantor, as
applicable, (e) any obligations with respect to any Capital Stock or (f) any
Indebtedness Incurred in violation of this Indenture.

                  "Significant Subsidiary" means any Restricted Subsidiary that
would be a "Significant Subsidiary" of the Company within the meaning of Rule
1-02 under Regulation S-X promulgated by the SEC.

                  "S&P" means Standard and Poor's Ratings Service, a division of
The McGraw-Hill Companies, Inc.

                  "Stated Maturity" means, with respect to any security, the
date specified in such security as the fixed date on which the final payment of
principal of such security is due and payable, including pursuant to any
mandatory redemption provision (but excluding any provision providing for the
repurchase of such security upon a sale of assets or at the option of the holder
thereof upon the happening of any contingency beyond the control of the issuer
unless such contingency has occurred).

                  "Subordinated Obligation" means any Indebtedness of the
Company (whether outstanding on the Closing Date or thereafter Incurred) that is
subordinate or junior in right of payment to the Securities pursuant to a
written agreement. "Subordinated Obligation" of a Subsidiary Guarantor has a
correlative meaning.

                  "Subsidiary" of any Person means any corporation, association,
partnership or other business entity of which more than 50% of the total voting
power of shares of Capital Stock or other interests (including partnership
interests) entitled (without regard to the occurrence of any contingency) to
vote in the election of directors, managers or trustees thereof is at the time
owned or controlled, directly or indirectly, by (a) such

<PAGE>
                                                                              23

Person, (b) such Person and one or more Subsidiaries of such Person or (c) one
or more Subsidiaries of such Person.

                  "Subsidiary Guarantee" means each Guarantee of the obligations
with respect to the Securities issued by a Subsidiary of the Company pursuant to
the terms of this Indenture.

                  "Subsidiary Guarantor" means any Subsidiary that has issued a
Subsidiary Guarantee.

                  "Temporary Cash Investments" means any of the following: (a)
any investment in direct obligations of the United States of America or any
agency thereof or obligations Guaranteed by the United States of America or any
agency thereof, (b) investments in time deposit accounts, certificates of
deposit and money market deposits maturing within 180 days of the date of
acquisition thereof issued or guaranteed by a bank or trust company that is
organized under the laws of the United States of America, any state thereof or
any foreign country recognized by the United States of America having capital,
surplus and undivided profits aggregating in excess of $250,000,000 (or the
foreign currency equivalent thereof) and whose long-term debt is rated "A" (or
such similar equivalent rating) or higher by at least one nationally recognized
statistical rating organization (as defined in Rule 436 under the Securities
Act), (c) repurchase obligations with a term of not more than 30 days for
underlying securities of the types described in clause (a) above entered into
with a bank meeting the qualifications described in clause (b) above, (d)
investments in commercial paper, maturing not more than 270 days after the date
of acquisition, issued by a corporation (other than an Affiliate of the Company)
organized and in existence under the laws of the United States of America or any
foreign country recognized by the United States of America with a rating at the
time as of which any investment therein is made of "P-1" (or higher) according
to Moody's or "A-1" (or higher) according to S&P, (e) investments in money
market funds the investments of which consist solely of investments of the type
described in clause (a) through (d) above, and (f) investments in securities
with maturities of six months or less from the date of acquisition issued or
fully guaranteed by any state, commonwealth or territory of the United States of
America, or by any political subdivision or taxing authority thereof, and rated
at least "A" by S&P or "A" by Moody's.

                  "Third Party Securities" means, with respect to any
Securitization, notes, bonds or other debt instruments, beneficial interests in
a trust, undivided ownership interests or other securities issued for cash
consideration by the relevant Securitization Vehicle to banks, investors or
other financing sources (other than the Company and its Subsidiaries) the
proceeds of which are used to finance, in whole or part, the purchase by such
Securitization Vehicle of accounts receivable (including Account Assets) or
inventory in a Securitization.

<PAGE>
                                                                              24

                  "TIA" means the Trust Indenture Act of 1939 (15 U.S.C.ss.ss.
77aaa-77bbbb) as in effect on the Closing Date.

                  "Trade Payables" means, with respect to any Person, any
accounts payable or any indebtedness or monetary obligation to trade creditors
created, assumed or Guaranteed by such Person arising in the ordinary course of
business in connection with the acquisition of goods or services.

                  "Trustee" means the party named as such in this Indenture
until a successor replaces it and, thereafter, means the successor.

                  "Trust Officer" means the Chairman of the Board, the President
or any other officer or assistant officer of the Trustee assigned by the Trustee
to administer its corporate trust matters.

                  "Uniform Commercial Code" means the New York Uniform
Commercial Code as in effect from time to time.

                  "Unrestricted Subsidiary" means (a) Calva Products Co., Inc.,
Cheese & Protein International LLC, Conroe ACS Company, LLC, ESSV, LLC, Hejlik
Pig Co. LC, Iowa River Feeds, LLC, Lakes Trading Group, Inc., Land O'Lakes
Capital Trust I, Land O'Lakes S.A. (FKA Pozbac S.A.), Land O'Lakes/Animal
Nutrition Specialties Co., LTD., LOLFC, LLC, LOL Finance Co., Munson Lakes
Nutrition, LLC, New Feeds, LLC, Northern Country Feeds, LLC, Nutri-Tech Feeds,
LLC, River Falls Country Store, LLC, Sery ICC Paslek, Soybean Research
Foundation, Inc., (b) any Subsidiary of the Company that at the time of
determination shall be designated an Unrestricted Subsidiary by the Board of
Directors in the manner provided below and (c) any Subsidiary of an Unrestricted
Subsidiary. The Board of Directors may designate any Subsidiary of the Company
(including any newly acquired or newly formed Subsidiary of the Company) to be
an Unrestricted Subsidiary unless such Subsidiary or any of its Subsidiaries
owns any Capital Stock or Indebtedness of, or owns or holds any Lien on any
property of, the Company or any other Subsidiary of the Company that is not a
Subsidiary of the Subsidiary to be so designated; provided, however, that either
(i) the Subsidiary to be so designated has total Consolidated assets of $1,000
or less or (ii) if such Subsidiary has Consolidated assets greater than $1,000,
then such designation would be permitted under Section 4.04. The Board of
Directors may designate any Unrestricted Subsidiary to be a Restricted
Subsidiary; provided, however, that immediately after giving effect to such
designation (a) the Company could Incur $1.00 of additional Indebtedness under
Section 4.03(a) and (b) no Default shall have occurred and be continuing. Any
such designation of a Subsidiary as a Restricted Subsidiary or Unrestricted
Subsidiary by the Board of Directors shall be evidenced to the Trustee by
promptly filing with the Trustee a copy of the resolution of the Board of
Directors giving effect to such designation and an

<PAGE>
                                                                              25

Officers' Certificate certifying that such designation complied with the
foregoing provisions.

                  "U.S. Government Obligations" means direct obligations (or
certificates representing an ownership interest in such obligations) of the
United States of America (including any agency or instrumentality thereof) for
the payment of which the full faith and credit of the United States of America
is pledged and which are not callable or redeemable at the issuer's option.

                  "Voting Stock" of a Person means all classes of Capital Stock
or other interests (including partnership interests) of such Person then
outstanding and normally entitled (without regard to the occurrence of any
contingency) to vote in the election of directors, managers or trustees thereof.
For the purposes of determining voting power of Voting Stock, the voting rights
of which vary, Voting Stock shall be deemed to have the number of votes equal to
the number of votes such Voting Stock was entitled to at the most recent vote of
shareholders.

                  "Wholly Owned Subsidiary" means a Restricted Subsidiary of the
Company all the Capital Stock of which (other than directors' qualifying shares)
is owned by the Company or another Wholly Owned Subsidiary.

                  SECTION 1.02. Other Definitions.

<TABLE>
<CAPTION>
                                                                                    Defined in
Term                                                                                  Section
----                                                                              ---------------
<S>                                                                               <C>
"Affiliate Transaction".......................................................... 4.07(a)
"Appendix"....................................................................... Preamble
"Bankruptcy Law"................................................................. 6.01
"beneficial ownership"........................................................... 1.01
"Change of Control Offer"........................................................ 4.08(b)
"covenant defeasance option"..................................................... 8.01(b)
"Custodian"...................................................................... 6.01
"Definitive Securities".......................................................... Appendix A
"Event of Default"............................................................... 6.01
"Exchange Securities"............................................................ Preamble
"Fall-Away Date"................................................................. 4.17
"Global Securities".............................................................. Appendix A
"Guaranteed Obligations"......................................................... 10.01
"incorporated provision"......................................................... 11.01
"Initial Securities"............................................................. Preamble
"legal defeasance option"........................................................ 8.01(b)
"Notice of Default".............................................................. 6.01
</TABLE>
<PAGE>
                                                                              26
<TABLE>
<CAPTION>
                                                                                    Defined in
Term                                                                                  Section
----                                                                              ---------------
<S>                                                                               <C>
"Offer".......................................................................... 4.06(b)
"Offer Amount"................................................................... 4.06(c)(ii)
"Offer Period"................................................................... 4.06(c)(ii)
"Original Securities"............................................................ Preamble
"Paying Agent"................................................................... 2.04
"protected purchaser"............................................................ 2.08
"Purchase Date".................................................................. 4.06(c)(i)
"Registration Agreement"......................................................... Appendix A
"Registered Exchange Offer"...................................................... Appendix A
"Registrar"...................................................................... 2.04
"Restricted Payment"............................................................. 4.04(a)
"Securities Custodian"........................................................... Appendix A
"Successor Company".............................................................. 5.01(a)
"Transfer Restricted Security"                                                    Exhibit A
</TABLE>

                  SECTION 1.03. Incorporation by Reference of Trust Indenture
Act. This Indenture is subject to the mandatory provisions of the TIA, which are
incorporated by reference in and made a part of this Indenture. The following
TIA terms have the following meanings:

                  "Commission" means the SEC.

                  "indenture securities" means the Securities and the Subsidiary
Guarantees.

                  "indenture security holder" means a Holder.

                  "indenture to be qualified" means this Indenture.

                  "indenture trustee" or "institutional trustee" means the
Trustee.

                  "obligor" on the indenture securities means the Company, the
Subsidiary Guarantors and any other obligor on the indenture securities.

                  All other TIA terms used in this Indenture that are defined by
the TIA, defined by TIA reference to another statute or defined by SEC rule have
the meanings assigned to them by such definitions.

                  SECTION 1.04. Rules of Construction. Unless the context
otherwise requires:

                  (a) a term has the meaning assigned to it;

<PAGE>
                                                                              27

                  (b) an accounting term not otherwise defined has the meaning
         assigned to it in accordance with GAAP;

                  (c) "or" is not exclusive;

                  (d) "including" means including without limitation;

                  (e) words in the singular include the plural and words in the
         plural include the singular;

                  (f) unsecured Indebtedness shall not be deemed to be
         subordinate or junior to Secured Indebtedness merely by virtue of its
         nature as unsecured Indebtedness;

                  (g) the principal amount of any noninterest bearing or other
         discount security at any date shall be the principal amount thereof
         that would be shown on a balance sheet of the issuer dated such date
         prepared in accordance with GAAP; and

                  (h) the principal amount of any Preferred Stock shall be (i)
         the maximum liquidation value of such Preferred Stock or (ii) the
         maximum mandatory redemption or mandatory repurchase price with respect
         to such Preferred Stock, whichever is greater.

                                    ARTICLE 2

                                 The Securities

                  SECTION 2.01. Amount of Securities; Issuable in Series. The
aggregate principal amount of Securities which may be authenticated and
delivered under this Indenture shall be unlimited. The Securities may be issued
in one or more series. All Securities of any one series shall be substantially
identical except as to denomination.

                  With respect to any Additional Securities issued after the
Closing Date (except for Securities authenticated and delivered upon
registration of transfer of, or in exchange for, or in lieu of, other Securities
pursuant to Section 2.07, 2.08, 2.09, 2.10 or 3.06 or the Appendix), there shall
be (a) established in or pursuant to a resolution of the Board of Directors and
(b) (i) set forth or determined in the manner provided in an Officers'
Certificate or (ii) established in one or more indentures supplemental hereto,
prior to the issuance of such Additional Securities:

                  (1) whether such Additional Securities shall be issued as part
         of a new or existing series of Securities and the title of such
         Additional Securities (which shall

<PAGE>
                                                                              28

         distinguish the Additional Securities of the series from Securities of
         any other series);

                  (2) the aggregate principal amount of such Additional
         Securities which may be authenticated and delivered under this
         Indenture, which may be in an unlimited aggregate principal amount;

                  (3) the issue price and issuance date of such Additional
         Securities, including the date from which interest on such Additional
         Securities shall accrue;

                  (4) if applicable, that such Additional Securities shall be
         issuable in whole or in part in the form of one or more Global
         Securities and, in such case, the respective depositaries for such
         Global Securities, the form of any legend or legends which shall be
         borne by such Global Securities in addition to or in lieu of those set
         forth in Exhibit A hereto and any circumstances in addition to or in
         lieu of those set forth in Section 2.3 of the Appendix in which any
         such Global Security may be exchanged in whole or in part for
         Additional Securities registered, or any transfer of such Global
         Security in whole or in part may be registered, in the name or names of
         Persons other than the depositary for such Global Security or a nominee
         thereof; and

                  (5) if applicable, that such Additional Securities shall not
         be issued in the form of Initial Securities as set forth in Exhibit A,
         but shall be issued in the form of Exchange Securities as set forth in
         Exhibit B.

                  If any of the terms of any Additional Securities are
established by action taken pursuant to a resolution of the Board of Directors,
a copy of an appropriate record of such action shall be certified by the
Secretary or any Assistant Secretary of the Company and delivered to the Trustee
at or prior to the delivery of the Officers' Certificate or the indenture
supplemental hereto setting forth the terms of the Additional Securities.

                  SECTION 2.02. Form and Dating. Provisions relating to the
Original Securities, the Additional Securities and the Exchange Securities are
set forth in the Appendix, which is hereby incorporated in and expressly made a
part of this Indenture. The (a) Original Securities and the Trustee's
certificate of authentication and (b) any Additional Securities (if issued as
Transfer Restricted Securities) and the Trustee's certificate of authentication
shall each be substantially in the form of Exhibit A hereto, which is hereby
incorporated in and expressly made a part of this Indenture. The Exchange
Securities and any Additional Securities issued other than as Transfer
Restricted Securities and the Trustee's certificate of authentication shall be
substantially in the form of Exhibit B hereto, which is hereby incorporated in
and expressly made a part of this Indenture. The Securities may have notations,
legends or endorsements

<PAGE>
                                                                              29

required by law, stock exchange rule, agreements to which the Company or any
Subsidiary Guarantor is subject, if any, or usage (provided that any such
notation, legend or endorsement is in a form acceptable to the Company). Each
Security shall be dated the date of its authentication. The Securities shall be
issuable only in registered form without interest coupons and only in
denominations of $1,000 and integral multiples thereof.

                  SECTION 2.03. Execution and Authentication. Two Officers shall
sign the Securities for the Company by manual or facsimile signature.

                  If an Officer whose signature is on a Security no longer holds
that office at the time the Trustee authenticates the Security, the Security
shall be valid nevertheless.

                  A Security shall not be valid until an authorized signatory of
the Trustee manually signs the certificate of authentication on the Security.
The signature shall be conclusive evidence that the Security has been
authenticated under this Indenture.

                  The Trustee shall authenticate and make available for delivery
Securities as set forth in the Appendix.

                  The Trustee may appoint an authenticating agent reasonably
acceptable to the Company to authenticate the Securities. Any such appointment
shall be evidenced by an instrument signed by a Trust Officer, a copy of which
shall be furnished to the Company. Unless limited by the terms of such
appointment, an authenticating agent may authenticate Securities whenever the
Trustee may do so. Each reference in this Indenture to authentication by the
Trustee includes authentication by such agent. An authenticating agent has the
same rights as any Registrar, Paying Agent or agent for service of notices and
demands.

                  SECTION 2.04. Registrar and Paying Agent. (a) The Company
shall maintain an office or agency where Securities may be presented for
registration of transfer or for exchange (the "Registrar") and an office or
agency where Securities may be presented for payment (the "Paying Agent"). The
Registrar shall keep a register of the Securities and of their transfer and
exchange. The Company may have one or more co-registrars and one or more
additional paying agents. The term "Paying Agent" includes any additional paying
agent, and the term "Registrar" includes any co-registrars. The Company
initially appoints the Trustee as (i) Registrar and Paying Agent in connection
with the Securities and (ii) the Securities Custodian with respect to the Global
Securities.

                  (b) The Company shall enter into an appropriate agency
agreement with any Registrar or Paying Agent not a party to this Indenture,
which shall incorporate the terms of the TIA. The agreement shall implement the
provisions of this Indenture that relate to such agent. The Company shall notify
the Trustee of the name and address of

<PAGE>
                                                                              30

any such agent. If the Company fails to maintain a Registrar or Paying Agent,
the Trustee shall act as such and shall be entitled to appropriate compensation
therefor pursuant to Section 7.07. The Company or any of its domestically
organized Wholly Owned Subsidiaries may act as Paying Agent or Registrar.

                  (c) The Company may remove any Registrar or Paying Agent upon
written notice to such Registrar or Paying Agent and to the Trustee; provided,
however, that no such removal shall become effective until (i) acceptance of an
appointment by a successor as evidenced by an appropriate agreement entered into
by the Company and such successor Registrar or Paying Agent, as the case may be,
and delivered to the Trustee or (ii) notification to the Trustee that the
Trustee shall serve as Registrar or Paying Agent until the appointment of a
successor in accordance with clause (i) above. The Registrar or Paying Agent may
resign at any time upon written notice to the Company and the Trustee.

                  SECTION 2.05. Paying Agent to Hold Money in Trust. On or prior
to each due date of the principal of and interest on any Security, the Company
shall deposit with the Paying Agent (or if the Company or a Wholly Owned
Subsidiary is acting as Paying Agent, segregate and hold in trust for the
benefit of the Persons entitled thereto) a sum sufficient to pay such principal
and interest when so becoming due. The Company shall require each Paying Agent
(other than the Trustee) to agree in writing that the Paying Agent shall hold in
trust for the benefit of Holders or the Trustee all money held by the Paying
Agent for the payment of principal of and interest on the Securities, and shall
notify the Trustee of any default by the Company in making any such payment. If
the Company or a Subsidiary of the Company acts as Paying Agent, it shall
segregate the money held by it as Paying Agent and hold it as a separate trust
fund. The Company at any time may require a Paying Agent to pay all money held
by it to the Trustee and to account for any funds disbursed by the Paying Agent.
Upon complying with this Section, the Paying Agent shall have no further
liability for the money delivered to the Trustee.

                  SECTION 2.06. Holder Lists. The Trustee shall preserve in as
current a form as is reasonably practicable the most recent list available to it
of the names and addresses of Holders. If the Trustee is not the Registrar, the
Company shall furnish, or cause the Registrar to furnish, to the Trustee, in
writing at least five Business Days before each interest payment date and at
such other times as the Trustee may request in writing, a list in such form and
as of such date as the Trustee may reasonably require of the names and addresses
of Holders.

                  SECTION 2.07. Transfer and Exchange. The Securities shall be
issued in registered form and shall be transferable only upon the surrender of a
Security for registration of transfer and in compliance with the Appendix. When
a Security is presented to the Registrar with a request to register a transfer,
the Registrar shall register the transfer as requested if its requirements
therefor are met. When Securities are

<PAGE>
                                                                              31

presented to the Registrar with a request to exchange them for an equal
principal amount of Securities of other denominations, the Registrar shall make
the exchange as requested if the same requirements are met. To permit
registration of transfers and exchanges, the Company shall execute and the
Trustee shall authenticate Securities at the Registrar's request. The Company
may require payment of a sum sufficient to pay all taxes, assessments or other
governmental charges in connection with any transfer or exchange pursuant to
this Section. The Company shall not be required to make and the Registrar need
not register transfers or exchanges of Securities selected for redemption
(except, in the case of Securities to be redeemed in part, the portion thereof
not to be redeemed) or any Securities for a period of 15 days before a selection
of Securities to be redeemed.

                  Prior to the due presentation for registration of transfer of
any Security, the Company, the Subsidiary Guarantors, the Trustee, the Paying
Agent, and the Registrar may deem and treat the Person in whose name a Security
is registered as the absolute owner of such Security for the purpose of
receiving payment of principal of and (subject to paragraph 2 of the Securities)
interest, if any, on such Security and for all other purposes whatsoever,
whether or not such Security is overdue, and none of the Company, any Subsidiary
Guarantor, the Trustee, the Paying Agent, or the Registrar shall be affected by
notice to the contrary.

                  Any Holder of a Global Security shall, by acceptance of such
Global Security, agree that transfers of beneficial interest in such Global
Security may be effected only through a book-entry system maintained by (a) the
Holder of such Global Security (or its agent) or (b) any Holder of a beneficial
interest in such Global Security, and that ownership of a beneficial interest in
such Global Security shall be required to be reflected in a book entry.

                  All Securities issued upon any transfer or exchange pursuant
to the terms of this Indenture shall evidence the same debt and shall be
entitled to the same benefits under this Indenture as the Securities surrendered
upon such transfer or exchange.

                  SECTION 2.08. Replacement Securities. If a mutilated Security
is surrendered to the Registrar or if the Holder of a Security claims that the
Security has been lost, destroyed or wrongfully taken, the Company shall issue
and the Trustee shall authenticate a replacement Security if the requirements of
Section 8-405 of the Uniform Commercial Code are met, such that the Holder (a)
notifies the Company or the Trustee within a reasonable time after such Holder
has notice of such loss, destruction or wrongful taking and the Registrar does
not register a transfer prior to receiving such notification, (b) gives such
notice prior to the Company or the Trustee having notice that the Security has
been acquired by a protected purchaser as defined in Section 8-303 of the
Uniform Commercial Code (a "protected purchaser") and (c) satisfies any other
reasonable requirements of the Trustee. If required by the Trustee or the
Company, such Holder shall furnish an indemnity bond sufficient in the judgment
of the Trustee to

<PAGE>
                                                                              32

protect the Company, the Trustee, the Paying Agent and the Registrar from any
loss that any of them may suffer if a Security is replaced. The Company and the
Trustee may charge the Holder for their expenses in replacing a Security. In the
event any such mutilated, lost, destroyed or wrongfully taken Security has
become or is about to become due and payable, the Company in its discretion may
pay such Security instead of issuing a new Security in replacement thereof.

                  Every replacement Security is an additional obligation of the
Company.

                  The provisions of this Section 2.08 are exclusive and shall
preclude (to the extent lawful) all other rights and remedies with respect to
the replacement or payment of mutilated, lost, destroyed or wrongfully taken
Securities.

                  SECTION 2.09. Outstanding Securities. Securities outstanding
at any time are all Securities authenticated by the Trustee except for those
canceled by it, those delivered to it for cancelation and those described in
this Section as not outstanding. Subject to Section 11.06, a Security does not
cease to be outstanding because the Company or an Affiliate of the Company holds
the Security.

                  If a Security is replaced pursuant to Section 2.08, it ceases
to be outstanding unless the Trustee and the Company receive proof satisfactory
to them that the replaced Security is held by a protected purchaser.

                  If the Paying Agent segregates and holds in trust, in
accordance with this Indenture, on a redemption date or maturity date money
sufficient to pay all principal and interest payable on that date with respect
to the Securities (or portions thereof) to be redeemed or maturing, as the case
may be, then on and after that date such Securities (or portions thereof) cease
to be outstanding and interest on them ceases to accrue.

                  SECTION 2.10. Temporary Securities. In the event that
Definitive Securities are to be issued under the terms of this Indenture, until
such Definitive Securities are ready for delivery, the Company may prepare and
the Trustee shall authenticate temporary Securities. Temporary Securities shall
be substantially in the form of Definitive Securities but may have variations
that the Company considers appropriate for temporary Securities. Without
unreasonable delay, the Company shall prepare and the Trustee shall authenticate
Definitive Securities and deliver them in exchange for temporary Securities upon
surrender of such temporary Securities at the office or agency of the Company,
without charge to the Holder.

                  SECTION 2.11. Cancelation. The Company at any time may deliver
Securities to the Trustee for cancelation. The Registrar and the Paying Agent
shall forward to the Trustee any Securities surrendered to them for registration
of transfer, exchange or payment. The Trustee and no one else shall cancel all
Securities surrendered

<PAGE>
                                                                              33

for registration of transfer, exchange, payment or cancelation and shall dispose
of canceled Securities in accordance with its customary procedures or deliver
canceled Securities to the Company pursuant to written direction by an Officer.
The Company may not issue new Securities to replace Securities it has redeemed,
paid or delivered to the Trustee for cancelation. The Trustee shall not
authenticate Securities in place of canceled Securities other than pursuant to
the terms of this Indenture.

                  SECTION 2.12. Defaulted Interest. If the Company defaults in a
payment of interest on the Securities, the Company shall pay the defaulted
interest (plus interest on such defaulted interest to the extent lawful) in any
lawful manner. The Company may pay the defaulted interest to the Persons who are
Holders on a subsequent special record date. The Company shall fix or cause to
be fixed any such special record date and payment date to the reasonable
satisfaction of the Trustee and shall promptly mail or cause to be mailed to
each Holder a notice that states the special record date, the payment date and
the amount of defaulted interest to be paid.

                  SECTION 2.13. CUSIP and ISIN Numbers. The Company in issuing
the Securities may use "CUSIP" and ISIN numbers (if then generally in use) and,
if so, the Trustee shall use "CUSIP" and ISIN numbers in notices of redemption
as a convenience to Holders; provided, however, that any such notice may state
that no representation is made as to the correctness of such numbers either as
printed on the Securities or as contained in any notice of a redemption and that
reliance may be placed only on the other identification numbers printed on the
Securities, and any such redemption shall not be affected by any defect in or
omission of such numbers.

                                    ARTICLE 3

                                   Redemption

                  SECTION 3.01. Notices to Trustee. If the Company elects to
redeem Securities pursuant to paragraph 5 of the Securities, it shall notify the
Trustee in writing of the redemption date and the principal amount of Securities
to be redeemed.

                  The Company shall give each notice to the Trustee provided for
in this Section at least 60 days before the redemption date unless the Trustee
consents to a shorter period. Such notice shall be accompanied by an Officers'
Certificate and an Opinion of Counsel from the Company to the effect that such
redemption will comply with the conditions herein. Any such notice may be
canceled at any time prior to notice of such redemption being mailed to any
Holder and shall thereby be void and of no effect.

                  SECTION 3.02. Selection of Securities To Be Redeemed. If fewer
than all the Securities are to be redeemed, the Trustee shall select the
Securities to be

<PAGE>
                                                                              34

redeemed pro rata or by lot or by a method that the Trustee in its sole
discretion shall deem to be fair and appropriate. The Trustee shall make the
selection from outstanding Securities not previously called for redemption. The
Trustee may select for redemption portions of the principal of Securities that
have denominations larger than $1,000. Securities and portions of them the
Trustee selects shall be in amounts of $1,000 or a whole multiple of $1,000.
Provisions of this Indenture that apply to Securities called for redemption also
apply to portions of Securities called for redemption. The Trustee shall notify
the Company promptly of the Securities or portions of Securities to be redeemed.

                  SECTION 3.03. Notice of Redemption. (a) At least 30 days but
not more than 60 days before a date for redemption of Securities, the Company
shall mail a notice of redemption by first-class mail to each Holder of
Securities to be redeemed at such Holder's registered address.

                  The notice shall identify the Securities to be redeemed and
shall state:

                  (i) the redemption date;

                  (ii) the redemption price and the amount of accrued interest
         to the redemption date;

                  (iii) the name and address of the Paying Agent;

                  (iv) that Securities called for redemption must be surrendered
         to the Paying Agent to collect the redemption price;

                  (v) if fewer than all the outstanding Securities are to be
         redeemed, the certificate numbers and principal amounts of the
         particular Securities to be redeemed;

                  (vi) that, unless the Company defaults in making such
         redemption payment or the Paying Agent is prohibited from making such
         payment pursuant to the terms of this Indenture, interest on Securities
         (or portion thereof) called for redemption ceases to accrue on and
         after the redemption date;

                  (vii) the CUSIP or ISIN number, if any, printed on the
         Securities being redeemed; and

                  (viii) that no representation is made as to the correctness or
         accuracy of the CUSIP or ISIN number, if any, listed in such notice or
         printed on the Securities.

<PAGE>
                                                                              35

                  (b) At the Company's request, the Trustee shall give the
notice of redemption in the Company's name and at the Company's expense. In such
event, the Company shall provide the Trustee with the information required by
this Section.

                  SECTION 3.04. Effect of Notice of Redemption. Once notice of
redemption is mailed, Securities called for redemption become due and payable on
the redemption date and at the redemption price stated in the notice. Upon
surrender to the Paying Agent, such Securities shall be paid at the redemption
price stated in the notice, plus accrued interest to the redemption date;
provided, however, that if the redemption date is after a regular record date
and on or prior to the interest payment date, the accrued interest shall be
payable to the Holder of the redeemed Securities registered on the relevant
record date. Failure to give notice or any defect in the notice to any Holder
shall not affect the validity of the notice to any other Holder.

                  SECTION 3.05. Deposit of Redemption Price. Prior to 10:00
a.m., New York City time, on the redemption date, the Company shall deposit with
the Paying Agent (or, if the Company or a Wholly Owned Subsidiary is the Paying
Agent, shall segregate and hold in trust) money sufficient to pay the redemption
price of and accrued interest on all Securities or portions thereof to be
redeemed on that date other than Securities or portions of Securities called for
redemption that have been delivered by the Company to the Trustee for
cancelation. On and after the redemption date, interest shall cease to accrue on
Securities or portions thereof called for redemption so long as the Company has
deposited with the Paying Agent funds sufficient to pay the principal of, plus
accrued and unpaid interest on the Securities to be redeemed, unless the Paying
Agent is prohibited from making such payment pursuant to the terms of this
Indenture.

                  SECTION 3.06. Securities Redeemed in Part. Upon surrender of a
Security that is redeemed in part, the Company shall execute and the Trustee
shall authenticate for the Holder (at the Company's expense) a new Security
equal in principal amount to the unredeemed portion of the Security surrendered.

                                    ARTICLE 4

                                    Covenants

                  SECTION 4.01. Payment of Securities. The Company shall
promptly pay the principal of and interest on the Securities on the dates and in
the manner provided in the Securities and in this Indenture. Principal and
interest shall be considered paid on the date due if on such date the Trustee or
the Paying Agent holds in accordance with this Indenture money sufficient to pay
all principal and interest then due and the Trustee or the Paying Agent, as the
case may be, is not prohibited from paying such money to the Holders on that
date pursuant to the terms of this Indenture.

<PAGE>
                                                                              36

                  The Company shall pay interest on overdue principal at the
rate specified therefor in the Securities, and it shall pay interest on overdue
installments of interest at the same rate to the extent lawful.

                  SECTION 4.02. SEC Reports. Notwithstanding that the Company
may not be subject to the reporting requirements of Section 13 or 15(d) of the
Exchange Act, the Company shall file with the SEC for public availability and
provide the Trustee and Holders and prospective Holders (upon request) within 15
days after it files them with the SEC, copies of its annual report and the
information, documents and other reports that are specified in Sections 13 and
15(d) of the Exchange Act; provided, that with respect to the Company's Form
10-Q for the quarter ended September 30, 2001, (i) the Company will provide such
Form 10-Q to the Trustee and Holders and prospective Holders (upon request)
within 45 days after the Closing Date and will not be required to file it with
the SEC and (ii) such Form 10-Q shall not be required to include separate
financial statements of Land O'Lakes Farmland Feed LLC or any predecessor
thereof. Notwithstanding the foregoing, at any time that (i) the Company is not
subject to the reporting requirements of Sections 13 or 15(d) of the Exchange
Act and (ii) the SEC will not accept filings from companies not subject to such
requirements, the Company may satisfy its obligations under the preceding
sentence by providing the required annual reports, information, documents and
other reports to the Trustee and Holders and prospective Holders (upon request).
The Company also shall comply with the other provisions of Section 314(a) of the
TIA.

                  SECTION 4.03. Limitation on Indebtedness. (a) The Company
shall not, and shall not permit any Restricted Subsidiary to, Incur, directly or
indirectly, any Indebtedness; provided, however, that the Company or any
Subsidiary Guarantor may Incur Indebtedness if on the date of such Incurrence
and after giving effect thereto, the Consolidated Coverage Ratio would be
greater than 2.5 to 1.

                  (b) Notwithstanding Section 4.03(a), the Company and its
Restricted Subsidiaries may Incur the following Indebtedness:

                  (i) Bank Indebtedness in an aggregate principal amount not to
         exceed $1,200 million less, without duplication, (1) the aggregate
         amount of all prepayments of principal applied to permanently reduce
         any such Indebtedness and (2) Indebtedness Incurred pursuant to clause
         (b)(viii)(1) below;

                  (ii) Indebtedness of the Company owed to and held by any
         Restricted Subsidiary or Indebtedness of a Restricted Subsidiary owed
         to and held by the Company or any other Restricted Subsidiary;
         provided, however, that (1) any subsequent issuance or transfer of any
         Capital Stock or any other event that results in any Restricted
         Subsidiary which is the holder of such Indebtedness ceasing to be a
         Restricted Subsidiary or any subsequent transfer of any such
         Indebtedness

<PAGE>
                                                                              37

         (except to the Company or a Restricted Subsidiary) shall be deemed, in
         each case, to constitute the Incurrence of such Indebtedness by the
         issuer thereof and (2) if the Company or a Restricted Subsidiary that
         is a Subsidiary Guarantor is the obligor on such Indebtedness and such
         Indebtedness is owed to and held by a Restricted Subsidiary that is not
         a Subsidiary Guarantor or by the Company, such Indebtedness is
         expressly subordinated to the prior payment in full in cash of all
         obligations of the Company with respect to the Securities or such
         Restricted Subsidiary with respect to its Subsidiary Guarantee, as
         applicable;

                  (iii) the Capital Securities in an aggregate amount not in
         excess of $200 million outstanding at any time;

                  (iv) Indebtedness (1) represented by the Securities (not
         including any Additional Securities) and the Subsidiary Guarantees, (2)
         outstanding on the Closing Date (other than the Indebtedness described
         in clauses (i), (ii) and (iii) above), (3) consisting of Refinancing
         Indebtedness Incurred in respect of any Indebtedness described in this
         clause (iv) (including Indebtedness that is Refinancing Indebtedness)
         or Section 4.03(a) and (4) consisting of Guarantees by the Company of
         Indebtedness of any Restricted Subsidiary and by any Restricted
         Subsidiary of Indebtedness of the Company or any other Restricted
         Subsidiary;

                  (v) (1) Indebtedness of a Restricted Subsidiary Incurred and
         outstanding on or prior to the date on which such Restricted Subsidiary
         was acquired by the Company (other than Indebtedness Incurred in
         contemplation of, in connection with, as consideration in, or to
         provide all or any portion of the funds or credit support utilized to
         consummate, the transaction or series of related transactions pursuant
         to which such Restricted Subsidiary became a Subsidiary of or was
         otherwise acquired by the Company); provided, however, that on the date
         that such Restricted Subsidiary is acquired by the Company, the Company
         would have been able to Incur $1.00 of additional Indebtedness pursuant
         to Section 4.03(a) after giving effect to the Incurrence of such
         Indebtedness pursuant to this clause (v) and (2) Refinancing
         Indebtedness Incurred by a Restricted Subsidiary in respect of
         Indebtedness Incurred by such Restricted Subsidiary pursuant to this
         clause (v);

                  (vi) Indebtedness (1) in respect of performance bonds,
         bankers' acceptances, letters of credit and surety or appeal bonds
         provided by the Company and the Restricted Subsidiaries in the ordinary
         course of their business, and (2) under Hedging Obligations that are
         Incurred in the ordinary course of business (A) for the purpose of
         fixing or hedging interest rate risk with respect to any Indebtedness
         that is permitted by the terms of this Indenture to be outstanding, (B)
         for the purpose of fixing or hedging currency exchange rate risk with
         respect

<PAGE>
                                                                              38

         to any currency exchanges or (C) for the purpose of fixing or hedging
         commodity price risk with respect to any commodity purchases;

                  (vii) Purchase Money Indebtedness, Capitalized Lease
         Obligations and Attributable Debt (in an aggregate principal amount not
         in excess of $50 million at any time outstanding);

                  (viii) (1) Indebtedness of Restricted Subsidiaries that are
         Securitization Vehicles in respect of Third Party Securities in an
         aggregate amount not to exceed $200 million at any time outstanding and
         (2) Indebtedness consisting solely of Liens on Sellers' Retained
         Interests in connection with Securitizations permitted by this
         Indenture securing obligations in respect of Third Party Securities
         permitted to be Incurred under clause (1) above;

                  (ix) Indebtedness consisting of loans from Agriliance and
         MoArk in the ordinary course of business for cash management purposes
         in an aggregate principal amount not to exceed $20 million outstanding
         at any time, which loans shall not be outstanding for more than 30
         days; or

                  (x) Indebtedness (other than Indebtedness permitted to be
         Incurred pursuant to Section 4.03(a) or any other clause of this
         Section 4.03(b)) in an aggregate principal amount on the date of
         Incurrence that, when added to all other Indebtedness Incurred pursuant
         to this clause (x) and then outstanding, shall not exceed $75 million.

                  (c) Notwithstanding the foregoing, the Company shall not Incur
any Indebtedness pursuant to Section 4.03(b) above if the proceeds thereof are
used, directly or indirectly, to repay, prepay, redeem, defease, retire, refund
or refinance any Subordinated Obligations unless such Indebtedness shall be
subordinated to the Securities to at least the same extent as such Subordinated
Obligations.

                  (d) Notwithstanding any other provision of this Section 4.03,
the maximum amount of Indebtedness that the Company or any Restricted Subsidiary
may Incur pursuant to this Section shall not be deemed to be exceeded solely as
a result of fluctuations in the exchange rates of currencies. For purposes of
determining the outstanding principal amount of any particular Indebtedness
Incurred pursuant to this Section 4.03, (i) Indebtedness Incurred pursuant to
the Credit Agreement prior to or on the Closing Date shall be treated as
Incurred pursuant to Section 4.03(b)(i), (ii) Indebtedness permitted by this
Section 4.03 need not be permitted solely by reference to one provision
permitting such Indebtedness but may be permitted in part by one such provision
and in part by one or more other provisions of this Section 4.03 permitting such
Indebtedness and (iii) in the event that Indebtedness meets the criteria of more
than one of the types of Indebtedness described in this Section, the Company, in
its sole discretion,

<PAGE>
                                                                              39

shall classify such Indebtedness and only be required to include the amount of
such Indebtedness in one of such clauses.

                  SECTION 4.04. Limitation on Restricted Payments. (a) The
Company shall not, and shall not permit any Restricted Subsidiary, directly or
indirectly, to (i) declare or pay any dividend, make any distribution on or in
respect of its Capital Stock or make any similar payment (including any payment
of Patronage or any payment in connection with any merger or consolidation
involving the Company or any Subsidiary of the Company) to the direct or
indirect holders of its Capital Stock, except (1) dividends or distributions
payable solely in its Capital Stock (other than Disqualified Stock or Preferred
Stock), (2) dividends or distributions payable to the Company or a Restricted
Subsidiary (and, if such Restricted Subsidiary has shareholders other than the
Company or other Restricted Subsidiaries, to its other shareholders on a pro
rata basis) and (3) dividends paid in respect of the Capital Securities, (ii)
purchase, repurchase, redeem, retire, make any revolvement payment or otherwise
acquire for value any Capital Stock of the Company or any Restricted Subsidiary
held by Persons other than the Company or a Restricted Subsidiary (it being
understood that amounts owed from Members that can be offset against Patronage
payable to such Members shall be deemed not to be covered by this clause (ii)),
(iii) purchase, repurchase, redeem, retire, defease or otherwise acquire for
value, prior to scheduled maturity, scheduled repayment or scheduled sinking
fund payment any Subordinated Obligations or any Indebtedness owed to the trust
entity that has issued the Capital Securities (other than the purchase,
repurchase, redemption, retirement, defeasance or other acquisition for value of
Subordinated Obligations acquired in anticipation of satisfying a sinking fund
obligation, principal installment or final maturity, in each case due within one
year of the date of acquisition) or (iv) make any Investment (other than a
Permitted Investment) in any Person (any dividend, distribution, payment,
purchase, redemption, repurchase, defeasance, retirement, other acquisition or
Investment described in the foregoing items (i), (ii), (iii) and (iv) being
herein referred to as a "Restricted Payment") if at the time the Company or such
Restricted Subsidiary makes such Restricted Payment:

                  (1) a Default shall have occurred and be continuing (or would
         result therefrom);

                  (2) the Company could not Incur at least $1.00 of additional
         Indebtedness under Section 4.03(a); or

                  (3) the aggregate amount of such Restricted Payment and all
         other Restricted Payments (the amount so expended, if other than in
         cash, to be determined in good faith by the Board of Directors, whose
         determination shall be conclusive and evidenced by a resolution of the
         Board of Directors) declared or

<PAGE>
                                                                              40

         made subsequent to the Closing Date would exceed the sum, without
         duplication, of:

                           (A) 50% of the Consolidated Net Income accrued during
                  the period (treated as one accounting period) from January 1,
                  2001 to the end of the most recent fiscal quarter for which
                  consolidated financial statements of the Company are publicly
                  available prior to the date of such Restricted Payment (or, in
                  case such Consolidated Net Income shall be a deficit, minus
                  100% of such deficit);

                           (B) the aggregate Net Cash Proceeds received by the
                  Company from the issue or sale of its Capital Stock (other
                  than Disqualified Stock) subsequent to the Closing Date (other
                  than an issuance or sale to (x) a Subsidiary of the Company or
                  (y) an employee stock ownership plan or other trust
                  established by the Company or any of its Subsidiaries);

                           (C) the amount by which Indebtedness of the Company
                  or its Restricted Subsidiaries is reduced on the Company's
                  balance sheet upon the conversion or exchange (other than by a
                  Subsidiary of the Company) subsequent to the Closing Date of
                  any Indebtedness of the Company or its Restricted Subsidiaries
                  issued after the Closing Date which is convertible or
                  exchangeable for Capital Stock (other than Disqualified Stock)
                  of the Company (less the amount of any cash or the Fair Market
                  Value of other property distributed by the Company or any
                  Restricted Subsidiary upon such conversion or exchange);

                           (D) the amount equal to the net reduction in
                  Investments in Unrestricted Subsidiaries resulting from (x)
                  payments of dividends, repayments of the principal of loans or
                  advances or other transfers of assets to the Company or any
                  Restricted Subsidiary from Unrestricted Subsidiaries or (y)
                  the redesignation of Unrestricted Subsidiaries as Restricted
                  Subsidiaries (valued in each case as provided in the
                  definition of "Investment") not to exceed, in the case of any
                  Unrestricted Subsidiary, the amount of Investments previously
                  made by the Company or any Restricted Subsidiary in such
                  Unrestricted Subsidiary, which amount was included in the
                  calculation of the amount of Restricted Payments; and

                           (E) an amount equal to the cash distributions
                  received by the Company or any of its Restricted Subsidiaries
                  from any other Person (other than the Company or a Restricted
                  Subsidiary of the Company) during the period (treated as one
                  accounting period) from the beginning of the fiscal quarter
                  during which the Closing Date occurs to the end of the most
                  recent fiscal quarter for which consolidated financial
                  statements of

<PAGE>
                                                                              41

                  the Company are publicly available prior to the date of such
                  Restricted Payment.

                  (b) The provisions of Section 4.04(a) shall not prohibit:

                  (i) any purchase, repurchase, redemption, retirement or other
         acquisition for value of Capital Stock of the Company made by exchange
         for, or out of the proceeds of the substantially concurrent sale of,
         Capital Stock of the Company (other than Disqualified Stock and other
         than Capital Stock issued or sold to a Subsidiary of the Company or an
         employee stock ownership plan or other trust established by the Company
         or any of its Subsidiaries); provided, however, that (1) such purchase,
         repurchase, redemption, retirement or other acquisition for value shall
         be excluded in the calculation of the amount of Restricted Payments and
         (2) the Net Cash Proceeds from such sale applied in the manner set
         forth in this clause (i) shall be excluded from the calculation of
         amounts under Section 4.04(a)(iv)(3)(B);

                  (ii) any prepayment, repayment, purchase, repurchase,
         redemption, retirement, defeasance or other acquisition for value of
         Subordinated Obligations of the Company made by exchange for, or out of
         the proceeds of the substantially concurrent sale of, Indebtedness of
         the Company that is permitted to be Incurred pursuant to Section
         4.03(b); provided, however, that such prepayment, repayment, purchase,
         repurchase, redemption, retirement, defeasance or other acquisition for
         value shall be excluded in the calculation of the amount of Restricted
         Payments;

                  (iii) any prepayment, repayment, purchase, repurchase,
         redemption, retirement, defeasance or other acquisition for value of
         Subordinated Obligations from Net Available Cash to the extent
         permitted by Section 4.06; provided, however, that such prepayment,
         repayment, purchase, repurchase, redemption, retirement, defeasance or
         other acquisition for value shall be excluded in the calculation of the
         amount of Restricted Payments;

                  (iv) dividends paid within 60 days after the date of
         declaration thereof if at such date of declaration such dividends would
         have complied with Section 4.04(a); provided, however, that such
         dividends shall be included in the calculation of the amount of
         Restricted Payments;

                  (v) (1) the distribution or payment of Patronage in an
         aggregate amount not to exceed $30 million or (2) the distribution or
         payment of the Minimum Patronage Amount; provided, however, that such
         distributions or payments will be included in the calculation of the
         amount of Restricted Payments; or

<PAGE>
                                                                              42

                  (vi) dividends paid by the Company in an aggregate amount not
         to exceed $100,000 per annum with respect to its Preferred Stock issued
         and outstanding as of the Closing Date in accordance with the terms
         thereof on the Closing Date; provided, however, that such dividends
         will be included in the calculation of the amount of Restricted
         Payments.

                  SECTION 4.05. Limitation on Restrictions on Distributions from
Restricted Subsidiaries. The Company shall not, and shall not permit any
Restricted Subsidiary to, create or otherwise cause or permit to exist or become
effective any consensual encumbrance or restriction on the ability of any
Restricted Subsidiary to (a) pay dividends or make any other distributions on
its Capital Stock or pay any Indebtedness or other obligations owed to the
Company, (b) make any loans or advances to the Company or (c) transfer any of
its property or assets to the Company, except in each case described in the
foregoing (a), (b) and (c):

                  (i) any encumbrance or restriction pursuant to applicable law
         or an agreement in effect at or entered into on the Closing Date;

                  (ii) any encumbrance or restriction with respect to a
         Restricted Subsidiary pursuant to an agreement relating to any
         Indebtedness Incurred by such Restricted Subsidiary prior to the date
         on which such Restricted Subsidiary was acquired by the Company (other
         than Indebtedness Incurred as consideration in, in contemplation of, or
         to provide all or any portion of the funds or credit support utilized
         to consummate, the transaction or series of related transactions
         pursuant to which such Restricted Subsidiary became a Restricted
         Subsidiary or was otherwise acquired by the Company) and outstanding on
         such date;

                  (iii) any encumbrance or restriction pursuant to an agreement
         effecting a Refinancing of Indebtedness Incurred pursuant to an
         agreement referred to in clause (i) or (ii) of this Section 4.05 or
         this clause (iii) or contained in any amendment to an agreement
         referred to in clause (i) or (ii) of this Section 4.05 or this clause
         (iii); provided, however, that the encumbrances and restrictions
         contained in any such Refinancing agreement or amendment are no less
         favorable to the Holders than the encumbrances and restrictions
         contained in such predecessor agreements;

                  (iv) in the case of clause (c) of this Section 4.05, any
         encumbrance or restriction (1) that restricts in a customary manner the
         subletting, assignment or transfer of any property or asset that is
         subject to a lease, license or similar contract or (2) contained in
         security agreements securing Indebtedness of a Restricted Subsidiary to
         the extent such encumbrance or restriction restricts the transfer of
         the property subject to such security agreements;

<PAGE>
                                                                              43

                  (v) with respect to a Restricted Subsidiary, any restriction
         imposed pursuant to an agreement entered into for the sale or
         disposition of all or substantially all the Capital Stock or assets of
         such Restricted Subsidiary pending the closing of such sale or
         disposition; and

                  (vi) customary provisions in joint venture and similar
         agreements entered into in the ordinary course of business.

                  SECTION 4.06. Limitation on Sales of Assets and Subsidiary
Stock. (a) The Company shall not, and shall not permit any Restricted Subsidiary
to, make any Asset Disposition unless (i) the Company or such Restricted
Subsidiary receives consideration (including by way of relief from, or by any
other Person assuming sole responsibility for, any liabilities, contingent or
otherwise) at the time of such Asset Disposition at least equal to the Fair
Market Value of the shares and assets subject to such Asset Disposition, (ii) at
least 80% of the consideration thereof received by the Company or such
Restricted Subsidiary is in the form of cash and (iii) an amount equal to 100%
of the Net Available Cash from such Asset Disposition is applied by the Company
(or such Restricted Subsidiary, as the case may be) (1) first, to the extent the
Company elects (or is required by the terms of any Indebtedness), to prepay,
repay, purchase, repurchase, redeem, retire, defease, or otherwise acquire for
value Bank Indebtedness of the Company or Indebtedness (other than obligations
in respect of Preferred Stock) of a Wholly Owned Subsidiary (in each case other
than Indebtedness owed to the Company or an Affiliate of the Company and other
than obligations in respect of Disqualified Stock) within 270 days after the
later of the date of such Asset Disposition or the receipt of such Net Available
Cash; (2) second, to the extent of the balance of Net Available Cash after
application in accordance with clause (1), to the extent the Company or such
Restricted Subsidiary elects, to reinvest in Additional Assets (including by
means of an Investment in Additional Assets by a Restricted Subsidiary with Net
Available Cash received by the Company or another Restricted Subsidiary) within
270 days from the later of such Asset Disposition or the receipt of such Net
Available Cash; (3) third, to the extent of the balance of such Net Available
Cash after application in accordance with clauses (1) and (2), to make an Offer
(as defined in Section 4.06(b)) to purchase Securities pursuant to and subject
to the conditions of Section 4.06(b); provided, however, that if the Company
elects (or is required by the terms of any other Senior Indebtedness), such
Offer may be made ratably to purchase the Securities and other Senior
Indebtedness of the Company, and (4) fourth, to the extent of the balance of
such Net Available Cash after application in accordance with clauses (1), (2)
and (3),for any general corporate purpose permitted by the terms of this
Indenture; provided, however, that in connection with any prepayment, repayment,
purchase, repurchase, redemption, retirement, defeasance or other acquisition
for value of Indebtedness pursuant to clause (1), (3) or (4) above, the Company
or such Restricted Subsidiary shall retire such Indebtedness and shall cause the
related loan commitment (if any) to be permanently reduced in an amount equal to
the principal amount so prepaid, repaid, purchased, repurchased, redeemed,
retired, defeased or

<PAGE>
                                                                              44

otherwise acquired for value. Notwithstanding the foregoing provisions of this
Section 4.06(a), the Company and the Restricted Subsidiaries shall not be
required to apply any Net Available Cash in accordance with this Section 4.06(a)
except to the extent that the aggregate Net Available Cash from all Asset
Dispositions that is not applied in accordance with this Section 4.06(a) exceeds
$10 million.

                  For the purposes of Section 4.06(a)(ii), the following are
deemed to be cash: (A) the assumption of Indebtedness of the Company (other than
obligations in respect of Disqualified Stock of the Company) or any Restricted
Subsidiary (other than obligations in respect of Disqualified Stock and
Preferred Stock of a Restricted Subsidiary that is Subsidiary Guarantor) and the
release of the Company or such Restricted Subsidiary from all liability on such
Indebtedness in connection with such Asset Disposition, (B) securities received
by the Company or any Restricted Subsidiary from the transferee that are
promptly converted by the Company or such Restricted Subsidiary into cash and
(C) any Designated Noncash Consideration received by the Company or any of its
Restricted Subsidiaries in an Asset Disposition having an aggregate Fair Market
Value, taken together with all other Designated Noncash Consideration received
pursuant to this clause (C), not to exceed a cumulative amount of $50.0 million
(with the Fair Market Value of each item of Designated Noncash Consideration
being measured at the time received and without giving effect to subsequent
changes in value).

                  (b) In the event of an Asset Disposition that requires the
purchase of Securities pursuant to Section 4.06(a)(iii)(3), the Company shall be
required (i) to purchase Securities tendered pursuant to an offer by the Company
for the Securities (the "Offer") at a purchase price of 100% of their principal
amount plus accrued and unpaid interest thereon, if any, to the date of purchase
(subject to the right of Holders of record on the relevant date to receive
interest due on the relevant interest payment date) in accordance with the
procedures (including prorating in the event of oversubscription) set forth in
Section 4.06(c) and (ii) to purchase other Senior Indebtedness of the Company on
the terms and to the extent contemplated thereby (provided that in no event
shall the Company offer to purchase such other Senior Indebtedness of the
Company at a purchase price in excess of 100% of its principal amount (without
premium), plus accrued and unpaid interest thereon. If the aggregate purchase
price of Securities (and other Senior Indebtedness) tendered pursuant to the
Offer is less than the Net Available Cash allotted to the purchase of the
Securities (and other Senior Indebtedness), the Company shall apply the
remaining Net Available Cash in accordance with Section 4.06(a)(iii)(4). The
Company shall not be required to make an Offer for Securities (and other Senior
Indebtedness) pursuant to Section 4.06(a)(iii)(3) if the Net Available Cash
available therefor (after application of the proceeds as provided in clauses (1)
and (2) of Section 4.06(a)(iii)) is less than $10 million for any particular
Asset Disposition (which lesser amount shall be carried forward for purposes of
determining whether an Offer is required with respect to the Net Available Cash
from any subsequent Asset Disposition).

<PAGE>
                                                                              45

                  (c) (i) Promptly, and in any event within 10 days after the
Company becomes obligated to make an Offer, the Company shall be obligated to
deliver to the Trustee and send, by first-class mail to each Holder, a written
notice stating that the Holder may elect to have his Securities purchased by the
Company either in whole or in part (subject to prorating as hereinafter
described in the event the Offer is oversubscribed) in integral multiples of
$1,000 of principal amount, at the applicable purchase price. The notice shall
specify a purchase date not less than 30 days nor more than 60 days after the
date of such notice (the "Purchase Date") and shall contain such information
concerning the business of the Company which the Company in good faith believes
will enable such Holders to make an informed decision (which at a minimum shall
include (1) the most recently filed Annual Report on Form 10-K (including
audited consolidated financial statements) of the Company, the most recent
subsequently filed Quarterly Report on Form 10-Q and any Current Report on Form
8-K of the Company filed subsequent to such Quarterly Report, other than Current
Reports describing Asset Dispositions otherwise described in the offering
materials (or corresponding successor reports), (2) a description of material
developments in the Company's business subsequent to the date of the latest of
such reports, and (3) if material, appropriate pro forma financial information)
and all instructions and materials necessary to tender Securities pursuant to
the Offer, together with the address referred to in clause (iii).

                  (ii) Not later than the date upon which written notice of an
Offer is delivered to the Trustee as provided above, the Company shall deliver
to the Trustee an Officers' Certificate as to (1) the amount of the Offer (the
"Offer Amount"), (2) the allocation of the Net Available Cash from the Asset
Dispositions pursuant to which such Offer is being made and (3) the compliance
of such allocation with the provisions of Section 4.06(a). On such date, the
Company shall also irrevocably deposit with the Trustee or with a paying agent
(or, if the Company is acting as its own paying agent, segregate and hold in
trust) an amount equal to the Offer Amount to be invested in Temporary Cash
Investments and to be held for payment in accordance with the provisions of this
Section. Upon the expiration of the period for which the Offer remains open (the
"Offer Period"), the Company shall deliver to the Trustee for cancelation the
Securities or portions thereof that have been properly tendered to and are to be
accepted by the Company. The Trustee (or the Paying Agent, if not the Trustee)
shall, on the date of purchase, mail or deliver payment to each tendering Holder
in the amount of the purchase price. In the event that the amount delivered by
the Company to the Trustee is greater than the purchase price of the Securities
(and other Senior Indebtedness) tendered, the Trustee shall deliver the excess
to the Company immediately after the expiration of the Offer Period for
application in accordance with this Section 4.06.

                  (iii) Holders electing to have a Security purchased shall be
required to surrender the Security, with an appropriate form duly completed, to
the Company at the address specified in the notice at least three Business Days
prior to the Purchase Date. Holders shall be entitled to withdraw their election
if the Trustee or the Company

<PAGE>
                                                                              46

receives not later than one Business Day prior to the Purchase Date, a telegram,
telex, facsimile transmission or letter setting forth the name of the Holder,
the principal amount of the Security which was delivered by the Holder for
purchase and a statement that such Holder is withdrawing his election to have
such Security purchased. If at the expiration of the Offer Period the aggregate
principal amount of Securities and any other Senior Indebtedness included in the
Offer surrendered by holders thereof exceeds the Offer Amount, the Company shall
select the Securities and other Senior Indebtedness to be purchased on a pro
rata basis (with such adjustments as may be deemed appropriate by the Company so
that only Securities and other Senior Indebtedness in denominations of $1,000,
or integral multiples thereof, shall be purchased). Holders whose Securities are
purchased only in part will be issued new Securities equal in principal amount
to the unpurchased portion of the Securities surrendered.

                  (iv) At the time the Company delivers Securities to the
Trustee which are to be accepted for purchase, the Company shall also deliver an
Officers' Certificate stating that such Securities are to be accepted by the
Company pursuant to and in accordance with the terms of this Section. A Security
shall be deemed to have been accepted for purchase at the time the Trustee,
directly or through an agent, mails or delivers payment therefor to the
surrendering Holder.

                  (v) The Company shall comply, to the extent applicable, with
the requirements of Section 14(e) of the Exchange Act and any other securities
laws or regulations in connection with the repurchase of Securities pursuant to
this Section. To the extent that the provisions of any securities laws or
regulations conflict with provisions of this Section, the Company shall comply
with the applicable securities laws and regulations and shall not be deemed to
have breached its obligations under this Section by virtue thereof.

                  SECTION 4.07. Limitation on Transactions with Affiliates. (a)
The Company shall not, and shall not permit any Restricted Subsidiary to,
directly or indirectly, enter into or conduct any transaction or series of
related transactions (including, the purchase, sale, lease or exchange of any
property or the rendering of any service) with any Affiliate of the Company (an
"Affiliate Transaction") unless such Affiliate Transaction is on terms (i) that
are no less favorable to the Company or such Restricted Subsidiary, as the case
may be, than those that could be obtained at the time of such transaction in
arm's-length dealings with a Person who is not such an Affiliate, (ii) that, in
the event such Affiliate Transaction involves an aggregate amount in excess of
$10 million, (1) are set forth in writing and (2) have been approved by a
majority of the members of the Board of Directors having no personal stake in
such Affiliate Transaction, other than as a Member of the Company generally, and
(iii) that, in the event that such Affiliate Transaction involves an amount in
excess of $25 million, have been determined by a nationally recognized appraisal
or investment banking firm to be fair, from a financial standpoint, to the
Company and its Restricted Subsidiaries.
<PAGE>
                                                                              47

                  (b) The provisions of Section 4.07(a) shall not prohibit (i)
any Restricted Payment permitted to be paid pursuant to Section 4.04, (ii) any
issuance of securities, or other payments, awards or grants in cash, securities
or otherwise pursuant to, or the funding of, employment arrangements approved by
the Board of Directors, (iii) loans or advances to employees in the ordinary
course of business in accordance with past practices of the Company, but in any
event not to exceed $5 million in the aggregate outstanding at any one time,
(iv) the payment of reasonable fees to directors of the Company and its
Subsidiaries who are not employees of the Company or its Subsidiaries, (v) any
transaction between the Company and a Restricted Subsidiary or between
Restricted Subsidiaries, (vi) any agreement as in effect as of the Closing Date
on the terms described in the Offering Memorandum or any amendment or
replacement agreement thereto (so long as any such amendment or replacement
agreement is not disadvantageous to the Holders of the Securities in any
material respect); or (vii) Securitizations permitted by Section 4.03 and
Section 4.06; (viii) loans to or from Agriliance and MoArk in the ordinary
course of business for cash management purposes in an aggregate principal amount
not to exceed $20 million outstanding at any time, which loans shall not be
outstanding for more than 30 days; (ix) the provision by the Company or a
Restricted Subsidiary in the ordinary course of business of corporate services
(such as legal services and information technology services) and leasing of the
Company's employees, consistent with past practices, to Affiliates in which the
Company owns Capital Stock; or (x) any licensing or similar agreement entered
into in the ordinary course of business relating to the use of intellectual
property between the Company or a Restricted Subsidiary and Affiliates in which
the Company owns Capital Stock.

                  SECTION 4.08. Change of Control. (a) Upon a Change of Control,
each Holder shall have the right to require that the Company purchase all or any
part of such Holder's Securities at a purchase price in cash equal to 101% of
the principal amount thereof plus accrued and unpaid interest to the date of
purchase (subject to the right of Holders of record on the relevant record date
to receive interest due on the relevant interest payment date), in accordance
with the terms contemplated in Section 4.08(b); provided, however, that
notwithstanding the occurrence of a Change of Control, the Company shall not be
obligated to purchase the Securities pursuant to this Section 4.08 in the event
that it has exercised its right to redeem all the Securities under paragraph 5
of the Securities. In the event that at the time of such Change of Control the
terms of the Bank Indebtedness restrict or prohibit the repurchase of Securities
pursuant to this Section 4.08, then prior to the mailing of the notice to
Holders provided for in Section 4.08(b) below but in any event within 30 days
following any Change of Control, the Company shall (i) repay in full all Bank
Indebtedness or, if doing so will allow the purchase of Securities, offer to
repay in full all Bank Indebtedness and repay the Bank Indebtedness of each
lender who has accepted such offer or (ii) obtain the requisite consent under
the agreements governing the Bank Indebtedness to permit the repurchase of the
Securities as provided for in Section 4.08(b).

<PAGE>
                                                                              48

                  (b) Within 30 days following any Change of Control (except as
provided in the proviso to the first sentence of Section 4.08(a)), the Company
shall mail a notice to each Holder with a copy to the Trustee (the "Change of
Control Offer") stating:

                  (i) that a Change of Control has occurred and that such Holder
         has the right to require the Company to purchase all or a portion of
         such Holder's Securities at a purchase price in cash equal to 101% of
         the principal amount thereof, plus accrued and unpaid interest to the
         date of purchase (subject to the right of Holders of record on the
         relevant record date to receive interest on the relevant interest
         payment date);

                  (ii) the circumstances and relevant facts and financial
         information regarding such Change of Control;

                  (iii) the purchase date (which shall be no earlier than 30
         days nor later than 60 days from the date such notice is mailed); and

                  (iv) the instructions determined by the Company, consistent
         with this Section, that a Holder must follow in order to have its
         Securities purchased.

                  (c) Holders electing to have a Security purchased shall be
required to surrender the Security, with an appropriate form duly completed, to
the Company at the address specified in the notice at least three Business Days
prior to the purchase date. Holders shall be entitled to withdraw their election
if the Trustee or the Company receives not later than one Business Day prior to
the purchase date a telegram, telex, facsimile transmission or letter setting
forth the name of the Holder, the principal amount of the Security which was
delivered for purchase by the Holder and a statement that such Holder is
withdrawing his election to have such Security purchased. Holders whose
Securities are purchased only in part shall be issued new Securities equal in
principal amount to the unpurchased portion of the Securities surrendered.

                  (d) On the purchase date, all Securities purchased by the
Company under this Section shall be delivered to the Trustee for cancelation,
and the Company shall pay the purchase price plus accrued and unpaid interest to
the Holders entitled thereto.

                  (e) Notwithstanding the foregoing provisions of this Section,
the Company shall not be required to make a Change of Control Offer upon a
Change of Control if a third party makes the Change of Control Offer in the
manner, at the times and otherwise in compliance with the requirements set forth
in Section 4.08(b) applicable to a Change of Control Offer made by the Company
and purchases all Securities validly tendered and not withdrawn under such
Change of Control Offer.

<PAGE>
                                                                              49

                  (f) At the time the Company delivers Securities to the Trustee
which are to be accepted for purchase, the Company shall also deliver an
Officers' Certificate stating that such Securities are to be accepted by the
Company pursuant to and in accordance with the terms of this Section 4.08. A
Security shall be deemed to have been accepted for purchase at the time the
Trustee, directly or through an agent, mails or delivers payment therefor to the
surrendering Holder.

                  (g) Prior to any Change of Control Offer, the Company shall
deliver to the Trustee an Officers' Certificate stating that all conditions
precedent contained herein to the right of the Company to make such offer have
been complied with.

                  (h) The Company shall comply, to the extent applicable, with
the requirements of Section 14(e) of the Exchange Act and any other securities
laws or regulations in connection with the repurchase of Securities pursuant to
this Section. To the extent that the provisions of any securities laws or
regulations conflict with provisions of this Section, the Company shall comply
with the applicable securities laws and regulations and shall not be deemed to
have breached its obligations under this Section by virtue thereof.

                  SECTION 4.09. Compliance Certificate. The Company shall
deliver to the Trustee within 120 days after the end of each fiscal year of the
Company an Officers' Certificate stating that in the course of the performance
by the signers of their duties as Officers of the Company they would normally
have knowledge of any Default and whether or not the signers know of any Default
that occurred during such period. If they do, the certificate shall describe the
Default, its status and what action the Company is taking or proposes to take
with respect thereto. The Company also shall comply with Section 314(a)(4) of
the TIA.

                  SECTION 4.10. Further Instruments and Acts. Upon request of
the Trustee, the Company shall execute and deliver such further instruments and
do such further acts as may be reasonably necessary or proper to carry out more
effectively the purpose of this Indenture.

                  SECTION 4.11. Cooperative Status. The Company shall maintain
its status as a cooperative under both Subchapter T of the Code and Minnesota
Law.

                  SECTION 4.12. Future Subsidiary Guarantors. The Company shall
cause (a) at any time that any Bank Indebtedness is outstanding, each Subsidiary
of the Company that Incurs or enters into a Guarantee of any Bank Indebtedness
and (b) at any time that no Bank Indebtedness is outstanding, each domestic and,
to the extent no material adverse tax consequences would result therefrom,
foreign Restricted Subsidiary of the Company that Incurs any Indebtedness, to
become a Subsidiary Guarantor, and, if

<PAGE>
                                                                              50

applicable, execute and deliver to the Trustee a supplemental indenture in the
form of Exhibit C pursuant to which such Subsidiary will Guarantee payment of
the Securities.

                  SECTION 4.13. Limitation on Lines of Business. The Company
shall not, and shall not permit any Restricted Subsidiary to, engage in any
business, other than a Permitted Business.

                  SECTION 4.14. Limitation on the Sale or Issuance of Capital
Stock of Restricted Subsidiaries. The Company shall not sell or otherwise
dispose of any shares of Capital Stock of a Restricted Subsidiary (other than
any such transaction resulting in a Lien that constitutes a Permitted Lien), and
shall not permit any Restricted Subsidiary, directly or indirectly, to issue or
sell or otherwise dispose of any shares of its Capital Stock except: (a) to the
Company or a Restricted Subsidiary; (b) if, immediately after giving effect to
such issuance, sale or other disposition, neither the Company nor any of its
Subsidiaries own any Capital Stock of such Restricted Subsidiary, (c) if,
immediately after giving effect to such issuance or sale, such Restricted
Subsidiary would no longer constitute a Restricted Subsidiary and any Investment
in such Person remaining after giving effect thereto would have been permitted
to be made under Section 4.04 if made on the date of such issuance, sale or
other disposition (and such Investment shall be deemed to be an Investment for
the purposes of such covenant); or (d) if, immediately after giving effect to
such issuance, sale or other disposition, such Restricted Subsidiary would
continue to constitute a Restricted Subsidiary. The proceeds of any sale of such
Capital Stock permitted hereby shall be treated as Net Available Cash from an
Asset Disposition and shall be applied in accordance with Section 4.06.

                  SECTION 4.15. Limitation on Liens. The Company shall not, and
shall not permit any Restricted Subsidiary to, directly or indirectly, Incur or
permit to exist any Lien of any nature whatsoever on any of its property or
assets (including Capital Stock of a Restricted Subsidiary), whether owned at
the Closing Date or thereafter acquired, other than Permitted Liens, without
effectively providing that the Securities shall be secured equally and ratably
with (or prior to) the obligations so secured for so long as such obligations
are so secured.

                  SECTION 4.16. Limitation on Sale/Leaseback Transactions. The
Company shall not, and shall not permit any Restricted Subsidiary to, enter into
any Sale/Leaseback Transaction with respect to any property unless (a) the
Company or such Restricted Subsidiary would be entitled to (i) Incur
Indebtedness in an amount equal to the Attributable Debt with respect to such
Sale/Leaseback Transaction pursuant to Section 4.03 and (ii) create a Lien on
such property securing such Attributable Debt without equally and ratably
securing the Securities pursuant to Section 4.15, (b) the gross proceeds
received by the Company or such Restricted Subsidiary in connection with such
Sale/Leaseback Transaction are at least equal to the Fair Market Value of such
property and (c) the transfer of such property is permitted by, and the Company
applies the

<PAGE>
                                                                              51

proceeds of such transaction in compliance with, Section 4.06; provided,
however, that after the Fall-Away Date the requirements of clauses (a)(i) and
(c) above shall no longer apply.

                  SECTION 4.17. Fall-Away of Covenants. After the date (such
date, the "Fall-Away Date") on which (a) the Securities have been assigned an
Investment Grade rating by both Rating Agencies; (b) if the Investment Grade
rating is BBB-, in the case of S&P, or Baa3, in the case of Moody's, it shall
not be accompanied by either (i) in the case of S&P, a negative outlook, credit
watch negative or the equivalent thereof or (ii) in the case of Moody's, a
negative outlook, a review for possible downgrade or the equivalent thereof; (c)
no Default or Event of Default has occurred and is continuing; and (d) the
Company has delivered an Officers' Certificate to the Trustee certifying that
the conditions set forth in clauses (a), (b) and (c) above are satisfied and
notwithstanding that the Securities may later cease to have an Investment Grade
rating by either or both Rating Agencies or that the Investment Grade rating may
later be accompanied by either items (i) or (ii) set forth in clause (b) above,
the Company and the Restricted Subsidiaries will no longer be subject to the
following provisions of this Indenture: Sections 4.03, 4.04, 4.05, 4.06, 4.07,
4.13, 4.14 and 5.01(a)(iii).

                                    ARTICLE 5

                                Successor Company

                  SECTION 5.01. (a) When Company May Merge or Transfer Assets.
The Company shall not consolidate with or merge with or into, or convey,
transfer or lease all or substantially all its assets to, any Person, unless:

                  (i) the resulting, surviving or transferee Person (the
         "Successor Company") shall be a corporation organized and existing
         under the laws of the United States of America, any State thereof or
         the District of Columbia and the Successor Company (if not the Company)
         shall expressly assume, by a supplemental indenture hereto, executed
         and delivered to the Trustee, in form satisfactory to the Trustee, all
         the obligations of the Company under the Securities and this Indenture;

                  (ii) immediately after giving effect to such transaction (and
         treating any Indebtedness which becomes an obligation of the Successor
         Company or any Restricted Subsidiary as a result of such transaction as
         having been Incurred by the Successor Company or such Restricted
         Subsidiary at the time of such transaction), no Default shall have
         occurred and be continuing;

<PAGE>
                                                                              52

                  (iii) immediately after giving effect to such transaction, the
         Successor Company would be able to Incur an additional $1.00 of
         Indebtedness pursuant to Section 4.03(a);

                  (iv) immediately after giving effect to such transaction, the
         Successor Company shall have Consolidated Net Worth in an amount which
         is not less than the Consolidated Net Worth of the Company immediately
         prior to such transaction;

                  (v) the Company shall have delivered to the Trustee an
         Officers' Certificate and an Opinion of Counsel, each stating that such
         consolidation, merger or transfer and such supplemental indenture (if
         any) comply with this Indenture; and

                  (vi) the Company shall have delivered to the Trustee an
         Opinion of Counsel to the effect that the Holders will not recognize
         income, gain or loss for Federal income tax purposes as a result of
         such transaction and will be subject to Federal income tax on the same
         amounts, in the same manner and at the same times as would have been
         the case if such transaction had not occurred.

                  The Successor Company shall succeed to, and be substituted
for, and may exercise every right and power of, the Company under this
Indenture, but in the case of a conveyance, transfer or lease of all or
substantially all the Company's assets the obligation to pay the principal of
and interest on the Securities will remain in full force and effect.

                  In addition, except in a transaction as a result of which the
Subsidiary Guarantor would be released from its Subsidiary Guarantee as provided
in this Indenture, the Company will not permit any Subsidiary Guarantor to
consolidate with or merge with or into, or convey, transfer or lease all or
substantially all of its assets to any Person unless:

                  (i) the resulting, surviving or transferee Person (the
         "Successor Guarantor") will be a corporation organized and existing
         under the laws of the United States of America, any State thereof or
         the District of Columbia, and such Person (if not such Subsidiary
         Guarantor) shall expressly assume, by a supplemental indenture,
         executed and delivered to the Trustee, in form satisfactory to the
         Trustee, all the obligations of such Subsidiary Guarantor under its
         Subsidiary Guarantee;

                  (ii) immediately after giving effect to such transaction (and
         treating any Indebtedness which becomes an obligation of the Successor
         Guarantor or any Restricted Subsidiary as a result of such transaction
         as having been Incurred by

<PAGE>
                                                                              53

         the Successor Guarantor or such Restricted Subsidiary at the time of
         such transaction), no Default shall have occurred and be continuing;
         and

                  (iii) the Company shall have delivered to the Trustee an
         Officers' Certificate and an Opinion of Counsel, each stating that such
         consolidation, merger or transfer and such supplemental indenture (if
         any) comply with this Indenture.

                  (c) Notwithstanding the foregoing, any Restricted Subsidiary
may consolidate with, merge into or transfer all or part of its properties and
assets to the Company or any Subsidiary Guarantor.

                                    ARTICLE 6

                              Defaults and Remedies

                  SECTION 6.01. Events of Default. An "Event of Default" occurs
if:

                  (a) the Company defaults in any payment of interest on any
         Security when the same becomes due and payable and such default
         continues for a period of 30 days;

                  (b) the Company (i) defaults in the payment of the principal
         of any Security when the same becomes due and payable at its Stated
         Maturity, upon required redemption or repurchase, upon declaration or
         otherwise or (ii) fails to redeem or purchase Securities when required
         pursuant to this Indenture or the Securities;

                  (c) the Company or any Restricted Subsidiary fails to comply
         with Section 5.01;

                  (d) the Company or any Restricted Subsidiary fails to comply
         with Section 4.02, 4.03, 4.04, 4.05, 4.06, 4.07, 4.08, 4.11, 4.12,
         4.13, 4.14, 4.15 or 4.16 (other than a failure to purchase Securities
         when required under Section 4.06 or 4.08) and such failure continues
         for 30 days after a Notice of Default specified below;

                  (e) the Company or any Restricted Subsidiary fails to comply
         with any of its agreements in the Securities or this Indenture (other
         than those referred to in (a), (b), (c) or (d) above) and such failure
         continues for 60 days after a Notice of Default specified below;

<PAGE>
                                                                              54

                  (f) Indebtedness of the Company or any Restricted Subsidiary
         is not paid within any applicable grace period after final maturity or
         the acceleration of any such Indebtedness by the holders thereof
         because of a default and the total amount of such Indebtedness unpaid
         or accelerated exceeds $15 million or its foreign currency equivalent
         at the time;

                  (g) the Company or any Significant Subsidiary pursuant to or
         within the meaning of any Bankruptcy Law:

                           (i) commences a voluntary case;

                           (ii) consents to the entry of an order for relief
                  against it in an involuntary case;

                           (iii) consents to the appointment of a Custodian of
                  it or for any substantial part of its property; or

                           (iv) makes a general assignment for the benefit of
                  its creditors;

         or takes any comparable action under any foreign laws relating to
         insolvency;

                  (h) a court of competent jurisdiction enters an order or
         decree under any Bankruptcy Law that:

                           (i) is for relief against the Company or any
                  Significant Subsidiary in an involuntary case;

                           (ii) appoints a Custodian of the Company or any
                  Significant Subsidiary or for any substantial part of its
                  property; or

                           (iii) orders the winding up or liquidation of the
                  Company or any Significant Subsidiary;

         or any similar relief is granted under any foreign laws and the order
         or decree remains unstayed and in effect for 60 days;

                  (i) the rendering of any judgment or decree for the payment of
         money (other than judgments which are covered by enforceable insurance
         policies issued by reputable and creditworthy insurance companies for
         which coverage has been acknowledged in writing) in excess of $15
         million or its foreign currency equivalent against the Company or a
         Restricted Subsidiary if (i) an enforcement proceeding has been
         commenced by any creditor upon such judgment or decree or (ii) there is
         a period of 60 days following the entry of such judgment or decree

<PAGE>
                                                                              55

         during which such judgment or decree is not discharged, waived or the
         execution thereof stayed; or

                  (j) any Subsidiary Guarantee ceases to be in full force and
         effect (except as contemplated by the terms thereof) or any Subsidiary
         Guarantor or Person acting by or on behalf of such Subsidiary Guarantor
         denies or disaffirms its obligations under this Indenture or any
         Subsidiary Guarantee and such Default continues for 10 days after
         receipt of a Notice of Default specified below.

                  The foregoing shall constitute Events of Default whatever the
reason for any such Event of Default and whether it is voluntary or involuntary
or is effected by operation of law or pursuant to any judgment, decree or order
of any court or any order, rule or regulation of any administrative or
governmental body.

                  The term "Bankruptcy Law" means Title 11, United States Code,
or any similar Federal or state law for the relief of debtors. The term
"Custodian" means any receiver, trustee, assignee, liquidator, custodian or
similar official under any Bankruptcy Law.

                  A Default under clause (d), (e) or (j) above is not an Event
of Default until the Trustee notifies the Company or the Holders of at least 25%
in principal amount of the outstanding Securities notify the Company and the
Trustee of the Default and the Company or the Subsidiary Guarantor, as
applicable, does not cure such Default within the time specified in clauses (d),
(e) or (j) after receipt of such notice. Such notice must specify the Default,
demand that it be remedied and state that such notice is a "Notice of Default".

                  The Company shall deliver to the Trustee, within 30 days after
the occurrence thereof, written notice in the form of an Officers' Certificate
of any event which is, or with the giving of notice or the lapse of time or both
would become, an Event of Default, its status and what action the Company is
taking or proposes to take with respect thereto.

                  SECTION 6.02. Acceleration. If an Event of Default (other than
an Event of Default specified in Section 6.01(g) or (h) with respect to the
Company) occurs and is continuing, the Trustee by notice to the Company and the
Trustee, or the Holders of at least 25% in principal amount of the outstanding
Securities by notice to the Company, may declare the principal of and accrued
but unpaid interest on all the Securities to be due and payable. Upon such a
declaration, such principal and interest shall be due and payable immediately.
If an Event of Default specified in Section 6.01(g) or (h) with respect to the
Company occurs, the principal of and interest on all the Securities shall ipso
facto become and be immediately due and payable without any declaration or other
act on the part of the Trustee or any Holders. The Holders of a majority in
principal amount of

<PAGE>
                                                                              56

the Securities by notice to the Trustee may rescind an acceleration and its
consequences if the rescission would not conflict with any judgment or decree
and if all existing Events of Default have been cured or waived except
nonpayment of principal or interest that has become due solely because of
acceleration. No such rescission shall affect any subsequent Default or impair
any right consequent thereto.

                  SECTION 6.03. Other Remedies. If an Event of Default occurs
and is continuing, the Trustee may pursue any available remedy to collect the
payment of principal of or interest on the Securities or to enforce the
performance of any provision of the Securities or this Indenture.

                  The Trustee may maintain a proceeding even if it does not
possess any of the Securities or does not produce any of them in the proceeding.
A delay or omission by the Trustee or any Holder in exercising any right or
remedy accruing upon an Event of Default shall not impair the right or remedy or
constitute a waiver of or acquiescence in the Event of Default. No remedy is
exclusive of any other remedy. All available remedies are cumulative.

                  SECTION 6.04. Waiver of Past Defaults. The Holders of a
majority in principal amount of the Securities by notice to the Trustee may
waive an existing Default and its consequences except (a) a Default in the
payment of the principal of or interest on a Security, (b) a Default arising
from the failure to redeem or purchase any Security when required pursuant to
the terms of this Indenture or (c) a Default in respect of a provision that
under Section 9.02 cannot be amended without the consent of each Holder
affected. When a Default is waived, it is deemed cured, but no such waiver shall
extend to any subsequent or other Default or impair any consequent right.

                  SECTION 6.05. Control by Majority. The Holders of a majority
in principal amount of the Securities may direct the time, method and place of
conducting any proceeding for any remedy available to the Trustee or of
exercising any trust or power conferred on the Trustee. However, the Trustee may
refuse to follow any direction that conflicts with law or this Indenture or,
subject to Section 7.01, that the Trustee determines is unduly prejudicial to
the rights of other Holders or would involve the Trustee in personal liability;
provided, however, that the Trustee may take any other action deemed proper by
the Trustee that is not inconsistent with such direction. Prior to taking any
action hereunder, the Trustee shall be entitled to indemnification satisfactory
to it in its sole discretion against all losses and expenses caused by taking or
not taking such action.

<PAGE>
                                                                              57

                  SECTION 6.06. Limitation on Suits. (a) Except to enforce the
right to receive payment of principal, premium (if any) or interest when due, no
Holder may pursue any remedy with respect to this Indenture or the Securities
unless:

                  (i) the Holder gives to the Trustee written notice stating
         that an Event of Default is continuing;

                  (ii) the Holders of at least 25% in principal amount of the
         Securities make a written request to the Trustee to pursue the remedy;

                  (iii) such Holder or Holders offer to the Trustee reasonable
         security or indemnity against any loss, liability or expense;

                  (iv) the Trustee does not comply with the request within 60
         days after receipt of the request and the offer of security or
         indemnity; and

                  (v) the Holders of a majority in principal amount of the
         Securities do not give the Trustee a direction inconsistent with the
         request during such 60-day period.

                  (b) A Holder may not use this Indenture to prejudice the
rights of another Holder or to obtain a preference or priority over another
Holder.

                  SECTION 6.07. Rights of Holders to Receive Payment.
Notwithstanding any other provision of this Indenture, the right of any Holder
to receive payment of principal of and interest on the Securities held by such
Holder, on or after the respective due dates expressed or provided for in the
Securities, or to bring suit for the enforcement of any such payment on or after
such respective dates, shall not be impaired or affected without the consent of
such Holder.

                  SECTION 6.08. Collection Suit by Trustee. If an Event of
Default specified in Section 6.01(a) or (b) occurs and is continuing, the
Trustee may recover judgment in its own name and as trustee of an express trust
against the Company or any other obligor on the Securities for the whole amount
then due and owing (together with interest on overdue principal and (to the
extent lawful) on any unpaid interest at the rate provided for in the
Securities) and the amounts provided for in Section 7.07.

                  SECTION 6.09. Trustee May File Proofs of Claim. The Trustee
may file such proofs of claim and other papers or documents as may be necessary
or advisable in order to have the claims of the Trustee and the Holders allowed
in any judicial proceedings relative to the Company, any Subsidiary or
Subsidiary Guarantor, their creditors or their property and, unless prohibited
by law or applicable regulations, may vote on behalf of the Holders in any
election of a trustee in bankruptcy or other Person

<PAGE>
                                                                              58

performing similar functions, and any Custodian in any such judicial proceeding
is hereby authorized by each Holder to make payments to the Trustee and, in the
event that the Trustee shall consent to the making of such payments directly to
the Holders, to pay to the Trustee any amount due it for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents
and its counsel, and any other amounts due the Trustee under Section 7.07.

                  SECTION 6.10. Priorities. If the Trustee collects any money or
property pursuant to this Article 6, it shall pay out the money or property in
the following order:

                  FIRST: to the Trustee for amounts due under Section 7.07;

                  SECOND: to Holders for amounts due and unpaid on the
         Securities for principal and interest, ratably, without preference or
         priority of any kind, according to the amounts due and payable on the
         Securities for principal and interest, respectively; and

                  THIRD: to the Company.

                  The Trustee may fix a record date and payment date for any
payment to Holders pursuant to this Section. At least 15 days before such record
date, the Trustee shall mail to each Holder and the Company a notice that states
the record date, the payment date and amount to be paid.

                  SECTION 6.11. Undertaking for Costs. In any suit for the
enforcement of any right or remedy under this Indenture or in any suit against
the Trustee for any action taken or omitted by it as Trustee, a court in its
discretion may require the filing by any party litigant in the suit of an
undertaking to pay the costs of the suit, and the court in its discretion may
assess reasonable costs, including reasonable attorneys' fees, against any party
litigant in the suit, having due regard to the merits and good faith of the
claims or defenses made by the party litigant. This Section does not apply to a
suit by the Trustee, a suit by a Holder pursuant to Section 6.07 or a suit by
Holders of more than 10% in principal amount of the Securities.

                  SECTION 6.12. Waiver of Stay or Extension Laws. Neither the
Company nor any Subsidiary Guarantor (to the extent it may lawfully do so) shall
at any time insist upon, or plead, or in any manner whatsoever claim or take the
benefit or advantage of, any stay or extension law wherever enacted, now or at
any time hereafter in force, which may affect the covenants or the performance
of this Indenture; and the Company and each Subsidiary Guarantor (to the extent
that it may lawfully do so) hereby expressly waives all benefit or advantage of
any such law, and shall not hinder, delay or impede the execution of any power
herein granted to the Trustee, but shall suffer and permit the execution of
every such power as though no such law had been enacted.

<PAGE>
                                                                              59

                                    ARTICLE 7

                                     Trustee

                  SECTION 7.01. Duties of Trustee. (a) If an Event of Default
has occurred and is continuing, the Trustee shall exercise the rights and powers
vested in it by this Indenture and use the same degree of care and skill in
their exercise as a prudent person would exercise or use under the circumstances
in the conduct of such person's own affairs.

                  Except with respect to Sections 4.02 and 4.09, the Trustee
shall have no duty to inquire as to the performance of the Company with respect
to the covenants contained in Article Four.

                  Delivery of reports, information and documents to the Trustee
under Article Four is for informational purposes only and the Trustee's receipt
of the foregoing shall not constitute constructive notice of any information
contained therein or determinable from information contained therein, including
the Company's compliance with any of their covenants hereunder (as to which the
Trustee is entitled to rely exclusively on Officers' Certificates).

                  (b) Except during the continuance of an Event of Default:

                  (i) the Trustee undertakes to perform such duties and only
         such duties as are specifically set forth in this Indenture and no
         implied covenants or obligations shall be read into this Indenture
         against the Trustee; and

                  (ii) in the absence of bad faith on its part, the Trustee may
         conclusively rely, as to the truth of the statements and the
         correctness of the opinions expressed therein, upon certificates or
         opinions furnished to the Trustee and conforming to the requirements of
         this Indenture. However, the Trustee shall examine the certificates and
         opinions to determine whether or not they conform to the requirements
         of this Indenture.

                  (c) The Trustee may not be relieved from liability for its own
negligent action, its own negligent failure to act or its own wilful misconduct,
except that:

                  (i) this paragraph does not limit the effect of paragraph (b)
         of this Section;

                  (ii) the Trustee shall not be liable for any error of judgment
         made in good faith by a Trust Officer unless it is proved that the
         Trustee was negligent in ascertaining the pertinent facts;

<PAGE>
                                                                              60

                  (iii) the Trustee shall not be liable with respect to any
         action it takes or omits to take in good faith in accordance with a
         direction received by it pursuant to Section 6.05; and

                  (iv) no provision of this Indenture shall require the Trustee
         to expend or risk its own funds or otherwise incur financial liability
         in the performance of any of its duties hereunder or in the exercise of
         any of its rights or powers, if it shall have reasonable grounds to
         believe that repayment of such funds or adequate indemnity against such
         risk or liability is not reasonably assured to it.

                  (d) Every provision of this Indenture that in any way relates
to the Trustee is subject to paragraphs (a), (b) and (c) of this Section.

                  (e) The Trustee shall not be liable for interest on any money
received by it except as the Trustee may agree in writing with the Company.

                  (f) Money held in trust by the Trustee need not be segregated
from other funds except to the extent required by law.

                  (g) Every provision of this Indenture relating to the conduct
or affecting the liability of or affording protection to the Trustee shall be
subject to the provisions of this Section and to the provisions of the TIA.

                  SECTION 7.02. Rights of Trustee. (a) The Trustee may rely on
any document believed by it to be genuine and to have been signed or presented
by the proper person. The Trustee need not investigate any fact or matter stated
in the document.

                  (b) Before the Trustee acts or refrains from acting, it may
require an Officers' Certificate or an Opinion of Counsel. The Trustee shall not
be liable for any action it takes or omits to take in good faith in reliance on
the Officers' Certificate or Opinion of Counsel.

                  (c) The Trustee may act through agents and shall not be
responsible for the misconduct or negligence of any agent appointed with due
care.

                  (d) The Trustee shall not be liable for any action it takes or
omits to take in good faith which it believes to be authorized or within its
rights or powers; provided, however, that the Trustee's conduct does not
constitute wilful misconduct or negligence.

                  (e) The Trustee may consult with counsel, and the advice or
opinion of counsel with respect to legal matters relating to this Indenture and
the Securities shall be full and complete authorization and protection from
liability in respect of any action

<PAGE>
                                                                              61

taken, omitted or suffered by it hereunder in good faith and in accordance with
the advice or opinion of such counsel.

                  (f) The Trustee shall not be bound to make any investigation
into the facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, consent, order, approval, bond,
debenture, note or other paper or document unless requested in writing to do so
by the Holders of not less than a majority in principal amount of the Securities
at the time outstanding, but the Trustee, in its discretion, may make such
further inquiry or investigation into such facts or matters as it may see fit,
and, if the Trustee shall determine to make such further inquiry or
investigation, it shall be entitled to examine the books, records and premises
of the Company, personally or by agent or attorney.

                  SECTION 7.03. Individual Rights of Trustee. The Trustee in its
individual or any other capacity may become the owner or pledgee of Securities
and may otherwise deal with the Company or its Affiliates with the same rights
it would have if it were not Trustee. Any Paying Agent or Registrar may do the
same with like rights. However, the Trustee must comply with Sections 7.10 and
7.11.

                  SECTION 7.04. Trustee's Disclaimer. The Trustee shall not be
responsible for and makes no representation as to the validity or adequacy of
this Indenture, any Subsidiary Guarantee or the Securities, it shall not be
accountable for the Company's use of the proceeds from the Securities, and it
shall not be responsible for any statement of the Company or any Subsidiary
Guarantor in this Indenture or in any document issued in connection with the
sale of the Securities or in the Securities other than the Trustee's certificate
of authentication. The Trustee shall not be charged with knowledge of any
Default or Event of Default under Sections 6.01(c), (d), (e), (f), (g), (h), (i)
or (j) or of the identity of any Significant Subsidiary unless either (a) a
Trust Officer shall have actual knowledge thereof or (b) the Trustee shall have
received notice thereof in accordance with Section 11.02 hereof from the
Company, any Subsidiary Guarantor or any Holder.

                  SECTION 7.05. Notice of Defaults. If a Default occurs and is
continuing and if it is known to the Trustee, the Trustee shall mail to each
Holder notice of the Default within the earlier of 90 days after it occurs or 30
days after it is known to a trust officer. Except in the case of a Default in
payment of principal of or interest on any Security (including payments pursuant
to the mandatory redemption provisions of such Security, if any), the Trustee
may withhold the notice if and so long as a committee of its Trust Officers in
good faith determines that withholding the notice is in the interests of
Holders.

                  SECTION 7.06. Reports by Trustee to Holders. As promptly as
practicable after each May 15 beginning with the May 15 following the date of
this

<PAGE>
                                                                              62

Indenture, and in any event prior to June 15 in each year, the Trustee shall
mail to each Holder a brief report dated as of such May 15 that complies with
Section 313(a) of the TIA if and to the extent required thereby. The Trustee
shall also comply with Section 313(b) of the TIA.

                  A copy of each report at the time of its mailing to Holders
shall be filed with the SEC and each stock exchange (if any) on which the
Securities are listed. The Company agrees to notify promptly the Trustee
whenever the Securities become listed on any stock exchange and of any delisting
thereof.

                  SECTION 7.07. Compensation and Indemnity. The Company shall
pay to the Trustee from time to time reasonable compensation for its services.
The Trustee's compensation shall not be limited by any law on compensation of a
trustee of an express trust. The Company shall reimburse the Trustee upon
request for all reasonable out-of-pocket expenses incurred or made by it,
including costs of collection, in addition to the compensation for its services.
Such expenses shall include the reasonable compensation and expenses,
disbursements and advances of the Trustee's agents, counsel, accountants and
experts. The Company and each Subsidiary Guarantor, jointly and severally shall
indemnify the Trustee against any and all loss, liability or expense (including
reasonable attorneys' fees) incurred by or in connection with the administration
of this trust and the performance of its duties hereunder. The Trustee shall
notify the Company of any claim for which it may seek indemnity promptly upon
obtaining actual knowledge thereof; provided, however, that any failure so to
notify the Company shall not relieve the Company or any Subsidiary Guarantor of
its indemnity obligations hereunder. The Company shall defend the claim and the
indemnified party shall provide reasonable cooperation at the Company's expense
in the defense. Such indemnified parties may have separate counsel and the
Company and the Subsidiary Guarantors, as applicable shall pay the fees and
expenses of such counsel; provided, however, that the Company shall not be
required to pay such fees and expenses if it assumes such indemnified parties'
defense and, in such indemnified parties' reasonable judgment, there is no
conflict of interest between the Company and the Subsidiary Guarantors, as
applicable, and such parties in connection with such defense. The Company need
not reimburse any expense or indemnify against any loss, liability or expense
incurred by an indemnified party through such party's own wilful misconduct,
negligence or bad faith.

                  To secure the Company's payment obligations in this Section,
the Trustee shall have a lien prior to the Securities on all money or property
held or collected by the Trustee other than money or property held in trust to
pay principal of and interest on particular Securities.

                  The Company's payment obligations pursuant to this Section
shall survive the satisfaction or discharge of this Indenture, any rejection or
termination of this Indenture under any bankruptcy law or the resignation or
removal of the Trustee.

<PAGE>
                                                                              63

Without prejudice to any other rights available to the Trustee under applicable
law, when the Trustee incurs expenses after the occurrence of a Default
specified in Section 6.01(g) or (h) with respect to the Company, the expenses
are intended to constitute expenses of administration under the Bankruptcy Law.

                  SECTION 7.08. Replacement of Trustee. (a) The Trustee may
resign at any time by so notifying the Company. The Holders of a majority in
principal amount of the Securities may remove the Trustee by so notifying the
Trustee and may appoint a successor Trustee. The Company shall remove the
Trustee if:

                  (i) the Trustee fails to comply with Section 7.10;

                  (ii) the Trustee is adjudged bankrupt or insolvent;

                  (iii) a receiver or other public officer takes charge of the
         Trustee or its property; or

                  (iv) the Trustee otherwise becomes incapable of acting.

                  (b) If the Trustee resigns, is removed by the Company or by
the Holders of a majority in principal amount of the Securities and such Holders
do not reasonably promptly appoint a successor Trustee, or if a vacancy exists
in the office of Trustee for any reason (the Trustee in such event being
referred to herein as the retiring Trustee), the Company shall promptly appoint
a successor Trustee.

                  (c) A successor Trustee shall deliver a written acceptance of
its appointment to the retiring Trustee and to the Company. Thereupon the
resignation or removal of the retiring Trustee shall become effective, and the
successor Trustee shall have all the rights, powers and duties of the Trustee
under this Indenture. The successor Trustee shall mail a notice of its
succession to Holders. The retiring Trustee shall promptly transfer all property
held by it as Trustee to the successor Trustee, subject to the lien provided for
in Section 7.07.

                  (d) If a successor Trustee does not take office within 60 days
after the retiring Trustee resigns or is removed, the retiring Trustee or the
Holders of 10% in principal amount of the Securities may petition any court of
competent jurisdiction for the appointment of a successor Trustee.

                  (e) If the Trustee fails to comply with Section 7.10, unless
the Trustee's duty to resign is stayed as provided in Section 310(b) of the TIA,
any Holder who has been a bona fide holder of a Security for at least six months
may petition any court of competent jurisdiction for the removal of the Trustee
and the appointment of a successor Trustee.

<PAGE>
                                                                              64

                  (f) Notwithstanding the replacement of the Trustee pursuant to
this Section, the Company's obligations under Section 7.07 shall continue for
the benefit of the retiring Trustee.

                  SECTION 7.09. Successor Trustee by Merger. If the Trustee
consolidates with, merges or converts into, or transfers all or substantially
all its corporate trust business or assets to, another corporation or banking
association, the resulting, surviving or transferee corporation without any
further act shall be the successor Trustee.

                  In case at the time such successor or successors by merger,
conversion or consolidation to the Trustee shall succeed to the trusts created
by this Indenture any of the Securities shall have been authenticated but not
delivered, any such successor to the Trustee may adopt the certificate of
authentication of any predecessor trustee, and deliver such Securities so
authenticated; and in case at that time any of the Securities shall not have
been authenticated, any successor to the Trustee may authenticate such
Securities either in the name of any predecessor hereunder or in the name of the
successor to the Trustee; and in all such cases such certificates shall have the
full force which it is anywhere in the Securities or in this Indenture provided
that the certificate of the Trustee shall have.

                  SECTION 7.10. Eligibility; Disqualification. The Trustee shall
at all times satisfy the requirements of Section 310(a) of the TIA. The Trustee
shall have a combined capital and surplus of at least $50,000,000 as set forth
in its most recent published annual report of condition. The Trustee shall
comply with Section 310(b) of the TIA, subject to its right to apply for a stay
of its duty to resign under the penultimate paragraph of Section 310(b) of the
TIA; provided, however, that there shall be excluded from the operation of
Section 310(b)(1) of the TIA any indenture or indentures under which other
securities or certificates of interest or participation in other securities of
the Company are outstanding if the requirements for such exclusion set forth in
Section 310(b)(1) of the TIA are met.

                  SECTION 7.11. Preferential Collection of Claims Against
Company. The Trustee shall comply with Section 311(a) of the TIA, excluding any
creditor relationship listed in Section 311(b) of the TIA. A Trustee who has
resigned or been removed shall be subject to Section 311(a) of the TIA to the
extent indicated.

                                    ARTICLE 8

                       Discharge of Indenture; Defeasance

                  SECTION 8.01. Discharge of Liability on Securities;
Defeasance. (a) When (i) all outstanding Securities (other than Securities
replaced or paid pursuant to

<PAGE>
                                                                              65

Section 2.08) have been canceled or delivered to the Trustee for cancelation or
(ii) all outstanding Securities have become due and payable, whether at maturity
or as a result of the mailing of a notice of redemption pursuant to Article 3
hereof, and the Company irrevocably deposits with the Trustee funds in an amount
sufficient or U.S. Government Obligations, the principal of and interest on
which will be sufficient, or a combination thereof sufficient, in the written
opinion of a nationally recognized firm of independent public accountants
delivered to the Trustee (which delivery shall only be required if U.S.
Government Obligations have been so deposited), to pay the principal of, premium
(if any) and interest on the outstanding Securities when due at maturity or upon
redemption of, including interest thereon to maturity or such redemption date
(other than Securities replaced or paid pursuant to Section 2.08) and if in
either case the Company pays all other sums payable hereunder by the Company,
then this Indenture shall, subject to Section 8.01(c), cease to be of further
effect. The Trustee shall acknowledge satisfaction and discharge of this
Indenture on demand of the Company accompanied by an Officers' Certificate and
an Opinion of Counsel and at the cost and expense of the Company.

                  (b) Subject to Sections 8.01(c) and 8.02, the Company at any
time may terminate (i) all of its obligations under the Securities and this
Indenture ("legal defeasance option") or (ii) its obligations under Sections
4.02, 4.03, 4.04, 4.05, 4.06, 4.07, 4.08, 4.11, 4.12, 4.13, 4.14, 4.15 and 4.16
and the operation of Section 5.01(a)(iii), 5.01(a)(iv), 6.01(d), 6.01(f),
6.01(g) (with respect to Significant Subsidiaries of the Company only), 6.01(h)
(with respect to Significant Subsidiaries of the Company only) and 6.01(i)
("covenant defeasance option"). The Company may exercise its legal defeasance
option notwithstanding its prior exercise of its covenant defeasance option. In
the event that the Company terminates all of its obligations under the
Securities and this Indenture by exercising its legal defeasance option or its
covenant defeasance option, the obligations under the Subsidiary Guarantees
shall each be terminated simultaneously with the termination of such
obligations.

                  If the Company exercises its legal defeasance option, payment
of the Securities may not be accelerated because of an Event of Default. If the
Company exercises its covenant defeasance option, payment of the Securities may
not be accelerated because of an Event of Default specified in Section 6.01(d),
6.01(f), 6.01(g) (with respect to Significant Subsidiaries only), 6.01(h) (with
respect to Significant Subsidiaries only), 6.01(i) (with respect to Restricted
Subsidiaries only) or because of the failure of the Company to comply with
clauses (iii) and (iv) of Section 5.01(a).

                  Upon satisfaction of the conditions set forth herein and upon
request of the Company, the Trustee shall acknowledge in writing the discharge
of those obligations that the Company terminates.

                  (c) Notwithstanding clauses (a) and (b) above, the Company's
obligations in Sections 2.04, 2.05, 2.06, 2.07, 2.08, 2.09, 7.07, 7.08 and in
this Article 8 shall survive

<PAGE>
                                                                              66

until the Securities have been paid in full. Thereafter, the Company's
obligations in Sections 7.07, 8.05 and 8.06 shall survive.

                  SECTION 8.02. (a) Conditions to Defeasance. The Company may
exercise its legal defeasance option or its covenant defeasance option only if:

                  (i) the Company irrevocably deposits in trust with the Trustee
         money in an amount sufficient or U.S. Government Obligations, the
         principal of and interest on which will be sufficient, or a combination
         thereof sufficient, to pay the principal of, and premium (if any) and
         interest on the Securities when due at maturity or redemption, as the
         case may be, including interest thereon to maturity or such redemption
         date;

                  (ii) the Company delivers to the Trustee a certificate from a
         nationally recognized firm of independent accountants expressing their
         opinion that the payments of principal and interest when due and
         without reinvestment on the deposited U.S. Government Obligations plus
         any deposited money without investment will provide cash at such times
         and in such amounts as will be sufficient to pay principal, premium, if
         any, and interest , if any, when due on all the Securities to maturity
         or redemption, as the case may be;

                  (iii) 123 days pass after the deposit is made and during the
         123-day period no Default specified in Section 6.01(g) or (h) with
         respect to the Company occurs which is continuing at the end of the
         period;

                  (iv) the deposit does not constitute a default under any other
         agreement binding on the Company;

                  (v) the Company delivers to the Trustee an Opinion of Counsel
         to the effect that the trust resulting from the deposit does not
         constitute, or is qualified as, a regulated investment company under
         the Investment Company Act of 1940;

                  (vi) in the case of the legal defeasance option, the Company
         shall have delivered to the Trustee an Opinion of Counsel stating that
         (1) the Company has received from, or there has been published by, the
         Internal Revenue Service a ruling, or (2) since the date of this
         Indenture there has been a change in the applicable Federal income tax
         law, in either case to the effect that, and based thereon such Opinion
         of Counsel shall confirm that, the Holders will not recognize income,
         gain or loss for Federal income tax purposes as a result of such
         deposit and defeasance and will be subject to Federal income tax on the
         same amounts, in the same manner and at the same times as would have
         been the case if such deposit and defeasance had not occurred;

<PAGE>
                                                                              67

                  (vii) in the case of the covenant defeasance option, the
         Company shall have delivered to the Trustee an Opinion of Counsel to
         the effect that the Holders will not recognize income, gain or loss for
         Federal income tax purposes as a result of such deposit and defeasance
         and will be subject to Federal income tax on the same amounts, in the
         same manner and at the same times as would have been the case if such
         deposit and defeasance had not occurred; and

                  (viii) the Company delivers to the Trustee an Officers'
         Certificate and an Opinion of Counsel, each stating that all conditions
         precedent to the defeasance and discharge of the Securities as
         contemplated by this Article 8 have been complied with.

                  (b) Before or after a deposit, the Company may make
arrangements satisfactory to the Trustee for the redemption of Securities at a
future date in accordance with Article 3.

                  SECTION 8.03. Application of Trust Money. The Trustee shall
hold in trust money or U.S. Government Obligations deposited with it pursuant to
this Article 8. It shall apply the deposited money and the money from U.S.
Government Obligations through the Paying Agent and in accordance with this
Indenture to the payment of principal of and interest on the Securities.

                  SECTION 8.04. Repayment to Company. The Trustee and the Paying
Agent shall promptly turn over to the Company upon request any money or U.S.
Government Obligations held by it as provided in this Article which, in the
written opinion of nationally recognized firm of independent public accountants
delivered to the Trustee (which delivery shall only be required if U.S.
Government Obligations have been so deposited), are in excess of the amount
thereof which would then be required to be deposited to effect an equivalent
discharge or defeasance in accordance with this Article.

                  Subject to any applicable abandoned property law, the Trustee
and the Paying Agent shall pay to the Company upon written request any money
held by them for the payment of principal or interest that remains unclaimed for
two years, and, thereafter, Holders entitled to the money must look to the
Company for payment as general creditors, and the Trustee and the Paying Agent
shall have no further liability with respect to such monies.

                  SECTION 8.05. Indemnity for Government Obligations. The
Company shall pay and shall indemnify the Trustee against any tax, fee or other
charge imposed on or assessed against deposited U.S. Government Obligations or
the principal and interest received on such U.S. Government Obligations.

<PAGE>
                                                                              68

                  SECTION 8.06. Reinstatement. If the Trustee or Paying Agent is
unable to apply any money or U.S. Government Obligations in accordance with this
Article 8 by reason of any legal proceeding or by reason of any order or
judgment of any court or governmental authority enjoining, restraining or
otherwise prohibiting such application, the Company's obligations under this
Indenture and the Securities shall be revived and reinstated as though no
deposit had occurred pursuant to this Article 8 until such time as the Trustee
or Paying Agent is permitted to apply all such money or U.S. Government
Obligations in accordance with this Article 8; provided, however, that, if the
Company has made any payment of principal of or interest on, any Securities
because of the reinstatement of its obligations, the Company shall be subrogated
to the rights of the Holders of such Securities to receive such payment from the
money or U.S. Government Obligations held by the Trustee or Paying Agent.

                                    ARTICLE 9

                                   Amendments

                  SECTION 9.01. (a) Without Consent of Holders. The Company, the
Subsidiary Guarantors and the Trustee may amend this Indenture or the Securities
without notice to or consent of any Holder:

                  (i) to cure any ambiguity, omission, defect or inconsistency;

                  (ii) to comply with Article 5;

                  (iii) to provide for uncertificated Securities in addition to
         or in place of certificated Securities; provided, however, that the
         uncertificated Securities are issued in registered form for purposes of
         Section 163(f) of the Code or in a manner such that the uncertificated
         Securities are described in Section 163(f)(2)(B) of the Code;

                  (iv) to add additional Guarantees with respect to the
         Securities or to secure the Securities;

                  (v) to add to the covenants of the Company for the benefit of
         the Holders or to surrender any right or power herein conferred upon
         the Company;

                  (vi) to comply with any requirement of the SEC in connection
         with qualifying, or maintaining the qualification of, this Indenture
         under the TIA;

                  (vii) to secure the Securities;

<PAGE>
                                                                              69

                  (viii) to make any change that does not adversely affect the
         rights of any Holder; or

                  (ix) to provide for the issuance of the Exchange Securities,
         or Additional Securities

It shall not be necessary for the consent of the Holders under this Section 9.01
to approve the particular form of any proposed amendment, but it shall be
sufficient if such consent approves the substance thereof.

                  After an amendment under this Section 9.01 becomes effective,
the Company shall mail to Holders a notice briefly describing such amendment.
The failure to give such notice to all Holders, or any defect therein, shall not
impair or affect the validity of an amendment under this Section 9.01.

                  SECTION 9.02. With Consent of Holders. (a) The Company, the
Subsidiary Guarantors and the Trustee may amend this Indenture or the Securities
without notice to any Holder but with the written consent of the Holders of at
least a majority in principal amount of the Securities then outstanding
(including consents obtained in connection with a tender offer or exchange for
the Securities). However, without the consent of each Holder affected, an
amendment may not:

                  (i) reduce the amount of Securities whose Holders must consent
         to an amendment;

                  (ii) reduce the rate of or extend the time for payment of
         interest on any Security;

                  (iii) reduce the principal of or extend the Stated Maturity of
         any Security;

                  (iv) reduce the premium payable upon the redemption of any
         Security or change the time at which any Security may be redeemed in
         accordance with Article 3 or paragraph 5 of the Securities;

                  (v) make any Security payable in money other than that stated
         in the Security;

                  (vi) impair the right of any Holder to receive payment of
         principal of, and interest on, such Holder's Securities on or after the
         due dates thereof or to institute suit for the enforcement of any
         payment on or with respect to such Holder's Securities;

<PAGE>
                                                                              70

                  (vii) make any change in Section 6.04 or 6.07 or the second
         sentence of this Section 9.02; or

                  (viii) modify the Subsidiary Guarantees in any manner adverse
         to the Holders.

                  It shall not be necessary for the consent of the Holders under
this Section 9.02 to approve the particular form of any proposed amendment, but
it shall be sufficient if such consent approves the substance thereof.

                  After an amendment under this Section 9.02 becomes effective,
the Company shall mail to Holders a notice briefly describing such amendment.
The failure to give such notice to all Holders, or any defect therein, shall not
impair or affect the validity of an amendment under this Section 9.02.

                  SECTION 9.03. Compliance with Trust Indenture Act. Every
amendment to this Indenture or the Securities shall comply with the TIA as then
in effect.

                  SECTION 9.04. Revocation and Effect of Consents and Waivers.
(a) A consent to an amendment or a waiver by a Holder of a Security shall bind
the Holder and every subsequent Holder of that Security or portion of the
Security that evidences the same debt as the consenting Holder's Security, even
if notation of the consent or waiver is not made on the Security. However, any
such Holder or subsequent Holder may revoke the consent or waiver as to such
Holder's Security or portion of the Security if the Trustee receives the notice
of revocation before the date on which the Trustee or the Company receives the
requisite number of consents. After an amendment or waiver becomes effective, it
shall bind every Holder. An amendment or waiver becomes effective upon the (i)
receipt by the Company or the Trustee of the requisite number of consents, (ii)
satisfaction of conditions to effectiveness as set forth in this Indenture and
any indenture supplemental hereto containing such amendment or waiver and (iii)
execution of such amendment or waiver (or supplemental indenture) by the Company
and the Trustee.

                  (b) The Company may, but shall not be obligated to, fix a
record date for the purpose of determining the Holders entitled to give their
consent or take any other action described above or required or permitted to be
taken pursuant to this Indenture. If a record date is fixed, then
notwithstanding the immediately preceding paragraph, those Persons who were
Holders at such record date (or their duly designated proxies), and only those
Persons, shall be entitled to give such consent or to revoke any consent
previously given or to take any such action, whether or not such Persons
continue to be Holders after such record date. No such consent shall be valid or
effective for more than 120 days after such record date.

<PAGE>
                                                                              71

                  SECTION 9.05. Notation on or Exchange of Securities. If an
amendment changes the terms of a Security, the Trustee may require the Holder of
the Security to deliver it to the Trustee. The Trustee may place an appropriate
notation on the Security regarding the changed terms and return it to the
Holder. Alternatively, if the Company or the Trustee so determines, the Company
in exchange for the Security shall issue and the Trustee shall authenticate a
new Security that reflects the changed terms. Failure to make the appropriate
notation or to issue a new Security shall not affect the validity of such
amendment.

                  SECTION 9.06. Trustee to Sign Amendments. The Trustee shall
sign any amendment authorized pursuant to this Article 9 if the amendment does
not adversely affect the rights, duties, liabilities or immunities of the
Trustee. If it does, the Trustee may but need not sign it. In signing such
amendment the Trustee shall be entitled to receive indemnity reasonably
satisfactory to it and to receive, and (subject to Section 7.01) shall be fully
protected in relying upon, an Officers' Certificate and an Opinion of Counsel
stating that such amendment is authorized or permitted by this Indenture and
that such amendment is the legal, valid and binding obligation of the Company
and the Subsidiary Guarantors enforceable against them in accordance with its
terms, subject to customary exceptions, and complies with the provisions hereof
(including Section 9.03).

                  SECTION 9.07. Payment for Consent. Neither the Company nor any
Affiliate of the Company shall, directly or indirectly, pay or cause to be paid
any consideration, whether by way of interest, fee or otherwise, to any Holder
for or as an inducement to any consent, waiver or amendment of any of the terms
or provisions of this Indenture or the Securities unless such consideration is
offered to be paid to all Holders that so consent, waive or agree to amend in
the time frame set forth in solicitation documents relating to such consent,
waiver or agreement.

                                   ARTICLE 10

                              Subsidiary Guarantees

                  SECTION 10.01. (a) Subsidiary Guarantees. Each Subsidiary
Guarantor hereby jointly and severally irrevocably and unconditionally
guarantees, as a primary obligor and not merely as a surety, to each Holder and
to the Trustee and its successors and assigns (i) the full and punctual payment
when due, whether at Stated Maturity, by acceleration, by redemption or
otherwise, of all obligations of the Company under this Indenture (including
obligations to the Trustee) and the Securities, whether for payment of principal
of, interest on or premium, if any, in respect of the Securities and all other
monetary obligations of the Company under this Indenture and the Securities and
(ii) the

<PAGE>
                                                                              72

full and punctual performance within applicable grace periods of all other
obligations of the Company whether for fees, expenses, indemnification or
otherwise under this Indenture and the Securities (all the foregoing being
hereinafter collectively called the "Guaranteed Obligations"). Each Subsidiary
Guarantor further agrees that the Guaranteed Obligations may be extended or
renewed, in whole or in part, without notice or further assent from each such
Subsidiary Guarantor, and that each such Subsidiary Guarantor shall remain bound
under this Article 10 notwithstanding any extension or renewal of any Guaranteed
Obligation.

                  (b) Each Subsidiary Guarantor waives presentation to, demand
of payment from and protest to the Company of any of the Guaranteed Obligations
and also waives notice of protest for nonpayment. Each Subsidiary Guarantor
waives notice of any default under the Securities or the Guaranteed Obligations.
The obligations of each Subsidiary Guarantor hereunder shall not be affected by
(i) the failure of any Holder or the Trustee to assert any claim or demand or to
enforce any right or remedy against the Company or any other Person under this
Indenture, the Securities or any other agreement or otherwise; (ii) any
extension or renewal of any thereof; (iii) any rescission, waiver, amendment or
modification of any of the terms or provisions of this Indenture, the Securities
or any other agreement; (iv) the release of any security held by any Holder or
the Trustee for the Guaranteed Obligations or any of them; (v) the failure of
any Holder or Trustee to exercise any right or remedy against any other
guarantor of the Guaranteed Obligations; or (vi) any change in the ownership of
such Subsidiary Guarantor, except as provided in Section 10.02(b).

                  (c) Each Subsidiary Guarantor hereby waives any right to which
it may be entitled to have its obligations hereunder divided among the
Subsidiary Guarantors, such that such Subsidiary Guarantor's obligations would
be less than the full amount claimed. Each Subsidiary Guarantor hereby waives
any right to which it may be entitled to have the assets of the Company first be
used and depleted as payment of the Company's or such Subsidiary Guarantor's
obligations hereunder prior to any amounts being claimed from or paid by such
Subsidiary Guarantor hereunder. Each Subsidiary Guarantor hereby waives any
right to which it may be entitled to require that the Company be sued prior to
an action being initiated against such Subsidiary Guarantor.

                  (d) Each Subsidiary Guarantor further agrees that its
Subsidiary Guarantee herein constitutes a guarantee of payment, performance and
compliance when due (and not a guarantee of collection) and waives any right to
require that any resort be had by any Holder or the Trustee to any security held
for payment of the Guaranteed Obligations.

                  (e) Except as expressly set forth in Sections 8.01(b), 10.02
and 10.06, the obligations of each Subsidiary Guarantor hereunder shall not be
subject to any reduction, limitation, impairment or termination for any reason,
including any claim of waiver, release, surrender, alteration or compromise, and
shall not be subject to any defense of

<PAGE>
                                                                              73

setoff, counterclaim, recoupment or termination whatsoever or by reason of the
invalidity, illegality or unenforceability of the Guaranteed Obligations or
otherwise. Without limiting the generality of the foregoing, the obligations of
each Subsidiary Guarantor herein shall not be discharged or impaired or
otherwise affected by the failure of any Holder or the Trustee to assert any
claim or demand or to enforce any remedy under this Indenture, the Securities or
any other agreement, by any waiver or modification of any thereof, by any
default, failure or delay, wilful or otherwise, in the performance of the
obligations, or by any other act or thing or omission or delay to do any other
act or thing which may or might in any manner or to any extent vary the risk of
any Subsidiary Guarantor or would otherwise operate as a discharge of any
Subsidiary Guarantor as a matter of law or equity.

                  (f) Each Subsidiary Guarantor agrees that its Subsidiary
Guarantee shall remain in full force and effect until payment in full of all the
Guaranteed Obligations. Each Subsidiary Guarantor further agrees that its
Subsidiary Guarantee herein shall continue to be effective or be reinstated, as
the case may be, if at any time payment, or any part thereof, of principal of,
interest or premium (if any) on any Guaranteed Obligation is rescinded or must
otherwise be restored by any Holder or the Trustee upon the bankruptcy or
reorganization of the Company or otherwise.

                  (g) In furtherance of the foregoing and not in limitation of
any other right which any Holder or the Trustee has at law or in equity against
any Subsidiary Guarantor by virtue hereof, upon the failure of the Company to
pay the principal of, interest or premium (if any) on any Guaranteed Obligation
when and as the same shall become due, whether at maturity, by acceleration, by
redemption or otherwise, or to perform or comply with any other Guaranteed
Obligation, each Subsidiary Guarantor hereby promises to and shall, upon receipt
of written demand by the Trustee, forthwith pay, or cause to be paid, in cash,
to the Holders or the Trustee an amount equal to the sum of (i) the unpaid
principal amount of such Guaranteed Obligations, (ii) accrued and unpaid
interest on such Guaranteed Obligations (but only to the extent not prohibited
by law) and (iii) all other monetary obligations of the Company to the Holders
and the Trustee.

                  (h) Each Subsidiary Guarantor agrees that it shall not be
entitled to any right of subrogation in relation to the Holders in respect of
any Guaranteed Obligations guaranteed hereby until payment in full of all
Guaranteed Obligations. Each Subsidiary Guarantor further agrees that, as
between it, on the one hand, and the Holders and the Trustee, on the other hand,
(i) the maturity of the Guaranteed Obligations guaranteed hereby may be
accelerated as provided in Article 6 for the purposes of any Subsidiary
Guarantee herein, notwithstanding any stay, injunction or other prohibition
preventing such acceleration in respect of the Guaranteed Obligations guaranteed
hereby, and (ii) in the event of any declaration of acceleration of such
Guaranteed Obligations as provided in Article 6, such Guaranteed Obligations
(whether or not due and payable) shall

<PAGE>
                                                                              74

forthwith become due and payable by such Subsidiary Guarantor for the purposes
of this Section 10.01.

                  (j) Each Subsidiary Guarantor also agrees to pay any and all
costs and expenses (including reasonable attorneys' fees and expenses) incurred
by the Trustee or any Holder in enforcing any rights under this Section 10.01.

                  (k) Upon request of the Trustee, each Subsidiary Guarantor
shall execute and deliver such further instruments and do such further acts as
may be reasonably necessary or proper to carry out more effectively the purpose
of this Indenture.

                  SECTION 10.02. Limitation on Liability. (a) Any term or
provision of this Indenture to the contrary notwithstanding, the maximum
aggregate amount of the Guaranteed Obligations guaranteed hereunder by any
Subsidiary Guarantor shall not exceed the maximum amount that can be hereby
guaranteed without rendering this Indenture, as it relates to such Subsidiary
Guarantor, voidable under applicable law relating to fraudulent conveyance or
fraudulent transfer or similar laws affecting the rights of creditors generally.

                  (b) A Subsidiary Guarantee as to any Subsidiary Guarantor
shall terminate and be of no further force or effect and such Subsidiary
Guarantor shall be deemed to be released from all obligations under this Article
10 upon (i) the merger or consolidation of such Subsidiary Guarantor with or
into any Person, (ii) the sale by the Company or any Subsidiary of the Company
(or any pledgee of the Company) of the Capital Stock of such Subsidiary
Guarantor or (iii) the sale of substantially all the assets of such Subsidiary
Guarantor, where, after such merger, consolidation or sale, such Subsidiary
Guarantor is no longer a Subsidiary of the Company; provided, however, that each
such merger, consolidation or sale (or, in the case of a sale by such a pledgee,
the disposition of the proceeds of such sale) shall comply with Section 4.06 and
Section 5.01(b). In addition, at any time that Bank Indebtedness is outstanding,
if any Subsidiary of the Company is released from its Guarantee of, and all
pledges and security interest granted in connection with, the Credit Agreement,
then such Subsidiary shall, at the option of the Company, be released and
relived of any obligations under its Subsidiary Guarantee. A Subsidiary
Guarantee by a Subsidiary of the Company will be automatically released upon (x)
such Subsidiary being designated and Unrestricted Subsidiary in compliance with
Section 4.04 or (y) such Subsidiary ceasing to be a Subsidiary of the Company as
a result of any foreclosure on any pledge or security interest securing Bank
Indebtedness or other exercise of remedies in respect thereof if such Subsidiary
is released from its Guarantee of, and all pledges and security interests
granted in connection with, the Credit Agreement. At the request of the Company,
the Trustee shall execute and deliver an appropriate instrument evidencing such
release (in the form provided by the Company).

<PAGE>
                                                                              75

                  SECTION 10.03. Successors and Assigns. This Article 10 shall
be binding upon each Subsidiary Guarantor and its successors and assigns and
shall inure to the benefit of the successors and assigns of the Trustee and the
Holders and, in the event of any transfer or assignment of rights by any Holder
or the Trustee, the rights and privileges conferred upon that party in this
Indenture and in the Securities shall automatically extend to and be vested in
such transferee or assignee, all subject to the terms and conditions of this
Indenture.

                  SECTION 10.04. No Waiver. Neither a failure nor a delay on the
part of either the Trustee or the Holders in exercising any right, power or
privilege under this Article 10 shall operate as a waiver thereof, nor shall a
single or partial exercise thereof preclude any other or further exercise of any
right, power or privilege. The rights, remedies and benefits of the Trustee and
the Holders herein expressly specified are cumulative and not exclusive of any
other rights, remedies or benefits which either may have under this Article 10
at law, in equity, by statute or otherwise.

                  SECTION 10.05. Modification. No modification, amendment or
waiver of any provision of this Article 10, nor the consent to any departure by
any Subsidiary Guarantor therefrom, shall in any event be effective unless the
same shall be in writing and signed by the Trustee, and then such waiver or
consent shall be effective only in the specific instance and for the purpose for
which given. No notice to or demand on any Subsidiary Guarantor in any case
shall entitle such Subsidiary Guarantor to any other or further notice or demand
in the same, similar or other circumstances.

                  SECTION 10.06. Execution of Supplemental Indenture for Future
Subsidiary Guarantors. Each Subsidiary which is required to become a Subsidiary
Guarantor pursuant to Section 4.12 shall promptly execute and deliver to the
Trustee a supplemental indenture in the form of Exhibit C hereto pursuant to
which such Subsidiary shall become a Subsidiary Guarantor under this Article 10
and shall guarantee the Guaranteed Obligations. Concurrently with the execution
and delivery of such supplemental indenture, the Company shall deliver to the
Trustee an Opinion of Counsel and an Officers' Certificate to the effect that
such supplemental indenture has been duly authorized, executed and delivered by
such Subsidiary and that, subject to the application of bankruptcy, insolvency,
moratorium, fraudulent conveyance or transfer and other similar laws relating to
creditors' rights generally and to the principles of equity, whether considered
in a proceeding at law or in equity, the Subsidiary Guarantee of such Subsidiary
Guarantor is a legal, valid and binding obligation of such Subsidiary Guarantor,
enforceable against such Subsidiary Guarantor in accordance with its terms and
or to such other matters as the Trustee may reasonably request.

                  SECTION 10.07. Non-Impairment. The failure to endorse a
Subsidiary Guarantee on any Security shall not affect or impair the validity
thereof.

<PAGE>
                                                                              76

                                   ARTICLE 11

                                  Miscellaneous

                  SECTION 11.01. Trust Indenture Act Controls. If and to the
extent that any provision of this Indenture limits, qualifies or conflicts with
the duties imposed by, or with another provision (an "incorporated provision")
included in this Indenture by operation of, Sections 310 to 318 of the TIA,
inclusive, such imposed duties or incorporated provision shall control.

                  SECTION 11.02. Notices. Any notice or communication shall be
in writing and delivered in person or mailed by first-class mail addressed as
follows:

                                 if to the Company:

                                 Land O'Lakes, Inc.
                                 4001 Lexington Avenue North
                                 Arden Hills, MN 55126
                                 Attention of:  Daniel E. Knutson

                                 with a copy to:

                                 Land O'Lakes, Inc.
                                 4001 Lexington Avenue North
                                 Arden Hills, MN 55126
                                 Attention of:  John Rebane

                                 if to the Trustee:

                                 U.S. Bank N.A.
                                 180 East Fifth Street
                                 St. Paul, MN 55101
                                 Attention of:  Corporate Trust Administration

                  The Company or the Trustee by notice to the other may
designate additional or different addresses for subsequent notices or
communications.

                  Any notice or communication mailed to a Holder shall be
mailed, first class mail, to the Holder at the Holder's address as it appears on
the registration books of the Registrar and shall be sufficiently given if so
mailed within the time prescribed.
<PAGE>
                                                                              77

                  Failure to mail a notice or communication to a Holder or any
defect in it shall not affect its sufficiency with respect to other Holders. If
a notice or communication is mailed in the manner provided above, it is duly
given, whether or not the addressee receives it.

                  SECTION 11.03. Communication by Holders with Other Holders.
Holders may communicate pursuant to Section 312(b) of the TIA with other Holders
with respect to their rights under this Indenture or the Securities. The
Company, the Trustee, the Registrar and anyone else shall have the protection of
Section 312(c) of the TIA.

                  SECTION 11.04. Certificate and Opinion as to Conditions
Precedent. Upon any request or application by the Company to the Trustee to take
or refrain from taking any action under this Indenture, the Company, upon the
reasonable request of the Trustee, shall furnish to the Trustee:

                  (a) an Officers' Certificate in form reasonably satisfactory
         to the Trustee stating that, in the opinion of the signers, all
         conditions precedent, if any, provided for in this Indenture relating
         to the proposed action have been complied with; and

                  (b) an Opinion of Counsel in form reasonably satisfactory to
         the Trustee stating that, in the opinion of such counsel, all such
         conditions precedent have been complied with.

                  SECTION 11.05. Statements Required in Certificate or Opinion.
Each certificate or opinion with respect to compliance with a covenant or
condition provided for in this Indenture (other than pursuant to Section 4.09)
shall include:

                  (a) a statement that the individual making such certificate or
         opinion has read such covenant or condition;

                  (b) a statement that, in the opinion of such individual, he
         has made such examination or investigation as is necessary to enable
         him to express an informed opinion as to whether or not such covenant
         or condition has been complied with; and

                  (c) a statement as to whether or not, in the opinion of such
         individual, such covenant or condition has been complied with.

                  SECTION 11.06. When Securities Disregarded. In determining
whether the Holders of the required principal amount of Securities have
concurred in any direction, waiver or consent, Securities owned by the Company,
any Subsidiary Guarantor or by any Person directly or indirectly controlling or
controlled by or under direct or indirect common control with the Company or any
Subsidiary Guarantor shall be

<PAGE>

                                                                              78

disregarded and deemed not to be outstanding, except that, for the purpose of
determining whether the Trustee shall be protected in relying on any such
direction, waiver or consent, only Securities which the Trustee knows are so
owned shall be so disregarded. Subject to the foregoing, only Securities
outstanding at the time shall be considered in any such determination.

                  SECTION 11.07. Rules by Trustee, Paying Agent and Registrar.
The Trustee may make reasonable rules for action by or a meeting of Holders. The
Registrar and the Paying Agent may make reasonable rules for their functions.

                  SECTION 11.08. Legal Holidays. If a payment date is a Legal
Holiday, payment shall be made on the next succeeding day that is not a Legal
Holiday, and no interest shall accrue for the intervening period. If a regular
record date is a Legal Holiday, the record date shall not be affected.

                  SECTION 11.09. GOVERNING LAW. THIS INDENTURE AND THE
SECURITIES SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF
THE STATE OF NEW YORK BUT WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF
CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER
JURISDICTION WOULD BE REQUIRED THEREBY.

                  SECTION 11.10. No Recourse Against Others. A director,
officer, employee or stockholder, as such, of the Company or any of the
Subsidiary Guarantors, shall not have any liability for any obligations of the
Company or any of the Subsidiary Guarantors under the Securities or this
Indenture or for any claim based on, in respect of or by reason of such
obligations or their creation. By accepting a Security, each Holder shall waive
and release all such liability. The waiver and release shall be part of the
consideration for the issue of the Securities.

                  SECTION 11.11. Successors. All agreements of the Company and
each Subsidiary Guarantor in this Indenture and the Securities shall bind its
successors. All agreements of the Trustee in this Indenture shall bind its
successors.

                  SECTION 11.12. Multiple Originals. The parties may sign any
number of copies of this Indenture. Each signed copy shall be an original, but
all of them together represent the same agreement. One signed copy is enough to
prove this Indenture.

                  SECTION 11.13. Table of Contents; Headings. The table of
contents, cross-reference sheet and headings of the Articles and Sections of
this Indenture have been inserted for convenience of reference only, are not
intended to be considered a part hereof and shall not modify or restrict any of
the terms or provisions hereof.
<PAGE>
                                                                              79

                  IN WITNESS WHEREOF, the parties have caused this Indenture to
be duly executed as of the date first written above.

                                                                      Schedule 1

LAND O'LAKES, INC.                             LAND O'LAKES HOLDINGS, INC.

By: /s/ Daniel Knutson                         By: /s/ Daniel Knutson
    ------------------------------                 -----------------------------
Name: Daniel Knutson                               Name: Daniel Knutson
Title: Senior Vice President &                     Title: Vice President/
Chief Financial Officer                                   Treasurer

ADVANCED BUSINESS CONCEPTS                     LOL HOLDINGS II, INC.
INTERNATIONAL, LLC

By: /s/ Thomas Verdoorn                        By: /s/ Daniel Knutson
    ------------------------------                 -----------------------------
Name: Thomas Verdoorn                              Name: Daniel Knutson
Title: President                                   Title: Treasurer

FARBEST, INC.                                  LAND O'LAKES INTERNATIONAL
                                               DEVELOPMENT CORPORATION

By: /s/ Daniel Knutson                         By: /s/ Thomas Verdoorn
    ------------------------------                 -----------------------------
Name: Daniel Knutson                               Name: Thomas Verdoorn
Title: Secretary/Treasurer                         Title: President

FMR, INC.                                      L.L. OLDS SEED COMPANY

By: /s/ Mary Mill                              By: /s/ Peter Janzen
    ------------------------------                 -----------------------------
Name: Mary Mills                                   Name: Peter Janzen
Title: Secretary                                   Title: Secretary

FORAGE GENETICS, INC.                          LOL POWER, LLC

By: /s/ Peter Janzen                           By: /s/ John Rebane
    ------------------------------                 -----------------------------
Name: Peter Janzen                                 Name: John Rebane
Title: Secretary                                   Title: Secretary

GOLDEN VALLEY DAIRY PRODUCTS                   MAPLELEAF, L.L.C.

By: /s/ John Reban                             By: /s/ Brian Roesler
    ------------------------------                 -----------------------------
Name: John Rebane                                  Name: Brian Roesler
Title:  Secretary                                  Title: Secretary/Treasurer

<PAGE>
                                                                              80

                                                                      Schedule 1

MICHIGAN STATE SEED COMPANY                    QC INDUSTRIES, INC.

By: /s/ Peter Janzen                           By: /s/ Mary Mills
    ------------------------------                 -----------------------------
Name: Peter Janzen                                 Name: Mary Mills
Title: Secretary                                   Title: Secretary

NORTH COAST FERTILIZER II, INC.                REALTY LOL, INC.

By: /s/ John Rebane                            By: /s/ John Rebane
    ------------------------------                 -----------------------------
Name: John Rebane                                  Name: John Rebane
Title: Secretary                                   Title: Vice President/
                                                          Secretary

NORTHWEST FOOD PRODUCTS COMPANY, INC.          RESEARCH SEEDS, INC.

By: /s/ Peter Janzen                           By: /s/ Peter Janzen
    ------------------------------                 -----------------------------
Name: Peter Janzen                                 Name: Peter Janzen
Title: Vice President/Secretary                    Title: Secretary

NORTHWEST FOOD PRODUCTS                        SEED RESEARCH, INC.
TRANSPORTATION, LLC

By: /s/ Paul Delperdang                        By: /s/ Peter Janzen
    ------------------------------                 -----------------------------
Name: Paul Delperdang                              Name: Peter Janzen
Title: Treasurer                                   Title: Secretary

QC HOLDINGS INC.                               SEEDBIOTICS, L.L.C.

By: /s/ Mary Mills                             By: /s/ Stuart Barclay
    ------------------------------                 -----------------------------
Name: Mary Mills                                   Name: Stuart Barclay
Title: Secretary                                   Title: Chief Manager

QC, INC.                                       ACS STORES, L.L.C.

By: /s/ Mary Mills                             By: /s/ Bob DeGregorio
    ------------------------------                 -----------------------------
Name: Mary Mills                                   Name: Bob DeGregorio
Title: Secretary                                   Title: Member Representative

<PAGE>
                                                                              81

                                                                      Schedule 1

ALLIANCE MILD PRODUCTS, LLC                    GOLDEN STATE FEEDS, LLC

By: /s/ Sharon Hoerth                          By: /s/ John Rebane
    ------------------------------                 -----------------------------
Name: Sharon Hoerth                                Name: John Rebane
Title: Vice President Finance                      Title: Assistant Secretary
       Secretary/Treasurer

AMERICA'S COUNTSTORES, LLC                     LAND O'LAKES FARMLAND FEED LLC

By: /s/ John Curran                            By: /s/ Bob DeGregorio
    ------------------------------                 -----------------------------
Name: John Curran                                  Name: Bob DeGregorio
Title: Assistant Secretary                         Title: President

AMERICA'S COUNTRY STORES                       MILK PRODUCTS, LLC
HOLDINGS, LLC
                                               By: /s/ Sharon Hoerth
By: /s/ John Curran                                -----------------------------
    ------------------------------                 Name: Sharon Hoerth
Name: John Curran                                  Title: Treasurer
Title: Assistant Secretary

COASTAL AG-DEVELOPMENT, INC.                   NUTRA-BLEND, LLC

By: /s/ Mike Doyle                             By: /s/ John Curran
    ------------------------------                 -----------------------------
Name: Mike Doyle                                   Name: John Curran
Title: Secretary/Treasurer                         Title: Assistant Secretary

DAIRY MANAGEMENT SERVICES, L.L.P.              PMI AGRICULTURE, L.L.C.

By: /s/ Mike Doyle                             By: /s/  Mike Doyle
    ------------------------------                 -----------------------------
Name: Mike Doyle                                   Name: Mike Doyle
Title: Manager                                     Title: Member

PM NUTIRITION COMPANY, LLC                     PURINA MILLS, LLC

By: /s/ John Curran                            By: /s/ John Curran
    ------------------------------                 -----------------------------
Name: John Curran                                  Name: John Curran
Title: Assistant Secretary                         Title: Assistant Secretary

<PAGE>
                                                                              82

                                                                      Schedule 1

PMI NUTRITION INTERNATIONAL, LLC               THOMAS PRODUCTS, LLC

By: /s/ John Curran                            By: /s/ John Rebane
    ------------------------------                 -----------------------------
Name: John Curran                                  Name: John Rebane
Title: Assistant Secretary                         Title: Assistant Secretary

                                               U.S. Bank N.A., as Trustee

                                               By: /s/ Frank P. Leslie
                                                   -----------------------------
                                                   Name: Frank Leslie
                                                   Title: Vice President

<PAGE>
                                                                      APPENDIX A

                   PROVISIONS RELATING TO ORIGINAL SECURITIES,
                  ADDITIONAL SECURITIES AND EXCHANGE SECURITIES

         1. Definitions

         1.1  Definitions

         For the purposes of this Appendix A the following terms shall have the
meanings indicated below:

                  "Applicable Procedures" means, with respect to any transfer or
transaction involving a Regulation S Global Security or beneficial interest
therein, the rules and procedures of the Depositary for such Global Security,
Euroclear and Clearstream, in each case to the extent applicable to such
transaction and as in effect from time to time.

                  "Clearstream" means Clearstream Banking, societe anonyme, or
any successor securities clearing agency.

                  "Definitive Security" means a certificated Initial Security or
Exchange Security (bearing the Restricted Securities Legend if the transfer of
such Security is restricted by applicable law) that does not include the Global
Securities Legend.

                  "Depositary" means The Depository Trust Company, its nominees
and their respective successors.

                  "Euroclear" means the Euroclear Clearance System or any
successor securities clearing agency.

                  "Global Securities Legend" means the legend set forth under
that caption in Exhibit A to this Indenture.

                  "IAI" means an institutional "accredited investor" as
described in Rule 501(a)(1), (2), (3) or (7) under the Securities Act.

                  "Initial Purchasers" means J.P. Morgan Securities Inc., SPP
Capital Partners, LLC, SunTrust Capital Markets, Inc., Tokyo-Mitsubishi
International plc and U.S. Bancorp Piper Jaffray, Inc.

                  "Purchase Agreement" means the Purchase Agreement dated
November 8, 2001, among the Company, the Subsidiary Guarantors and the Initial
Purchasers and (b) any other similar Purchase Agreement relating to Additional
Securities.

                  "QIB" means a "qualified institutional buyer" as defined in
Rule 144A.

<PAGE>

                                                                               2

                  "Registered Exchange Offer" means an offer by the Company,
pursuant to a the Registration Agreement, to certain Holders of Initial
Securities, to issue and deliver to such Holders, in exchange for their Initial
Securities, a like aggregate principal amount of Exchange Securities registered
under the Securities Act.

                  "Registration Agreement" means (a) the Exchange and
Registration Rights Agreement dated November 8, 2001, among the Company, the
Subsidiary Guarantors and the Initial Purchasers and (b) any other similar
Exchange and Registration Rights Agreement relating to Additional Securities.

                  "Regulation S" means Regulation S under the Securities Act.

                  "Regulation S Securities" means all Initial Securities offered
and sold outside the United States in reliance on Regulation S.

                  "Restricted Period", with respect to any Securities, means the
period of 40 consecutive days beginning on and including the later of (a) the
day on which such Securities are first offered to persons other than
distributors (as defined in Regulation S under the Securities Act) in reliance
on Regulation S, notice of which day shall be promptly given by the Company to
the Trustee, and (b) the Issue Date with respect to such Securities.

                  "Restricted Securities Legend" means the legend set forth in
Section 2.3(e)(i) herein.

                  "Rule 501" means Rule 501(a)(1), (2), (3) or (7) under the
Securities Act.

                  "Rule 144A" means Rule 144A under the Securities Act.

                  "Rule 144A Securities" means all Initial Securities offered
and sold to QIBs in reliance on Rule 144A.

                  "Securities Act" means the Securities Act of 1933, as amended.

                  "Securities Custodian" means the custodian with respect to a
Global Security (as appointed by the Depositary) or any successor person
thereto, who shall initially be the Trustee.

                  "Shelf Registration Statement" means a registration statement
filed by the Company in connection with the offer and sale of Initial Securities
pursuant to [a] the Registration Agreement.

<PAGE>
                                                                               3

                  "Transfer Restricted Securities" means Definitive Securities
and any other Securities that bear or are required to bear the Restricted
Securities Legend.

         1.2  Other Definitions

<TABLE>
<CAPTION>
         Term:                                                                             Defined in Section:
         ----                                                                              ------------------
<S>                                                                                        <C>
"Agent Members".........................................................................................2.1(c)
"IAI Global Security"...................................................................................2.1(b)
"Global Security".......................................................................................2.1(b)
"Regulation S Certificate"..............................................................................2.1(b)
"Regulation S Global Security"..........................................................................2.1(b)
"Regulation S Permanent Global Security.................................................................2.1(b)
"Regulation S Temporary Global Security.................................................................2.1(b)
"Rule 144A Global Security".............................................................................2.1(b)
</TABLE>

         2. The Securities

         2.1 Form and Dating

                  (a) The Initial Securities issued on the date hereof will be
(i) offered and sold by the Company pursuant to a Purchase Agreement and (ii)
resold, initially only to (1) QIBs in reliance on Rule 144A and (2) Persons
other than U.S. Persons (as defined in Regulation S) in reliance on Regulation
S. Such Initial Securities may thereafter be transferred to, among others, QIBs,
purchasers in reliance on Regulation S and, except as set forth below, IAIs in
accordance with Rule 501. Additional Securities offered after the date hereof
may be offered and sold by the Company from time to time pursuant to one or more
Purchase Agreements in accordance with applicable law.

                  (b) Global Securities. Rule 144A Securities shall be issued
initially in the form of one or more permanent global Securities in definitive,
fully registered form (collectively, the "Rule 144A Global Security") without
interest coupons and bearing the Global Securities Legend and Restricted
Securities Legend, which shall be deposited on behalf of the purchasers of the
Securities represented thereby with the Securities Custodian, and registered in
the name of the Depositary or a nominee of the Depositary, duly executed by the
Company and authenticated by the Trustee as provided in this Indenture.
Regulation S Global Securities shall be issued initially in the form of one or
more temporary Global Securities (the "Regulation S Temporary Global
Securities") without interest coupons and bearing the Global Securities Legend
and the Restricted Securities Legend and registered in the name of the
Depositary or a nominee of the Depositary. Beneficial interests in a Regulation
S Temporary Global Security will be exchangeable for beneficial interests in a
single permanent Global Security (the "Regulation S Permanent Global Security",
together with the Regulation S Temporary Global Security, the "Regulation S
Global Securities") on

<PAGE>

                                                                               4

or after the expiration of the Restricted Period upon the receipt by the Trustee
or its agent of a certificate certifying that the Holder of the beneficial
interest in the Regulation S Temporary Global Security is a non-United States
Person within the meaning of Regulation S or by United States persons who
purchased those interests pursuant to an exemption from, or in transactions not
subject to, the registration requirements of the Securities Act (a "Regulation S
Certificate"), substantially in the form set forth in Exhibit D hereto. One or
more global securities in definitive, fully registered form without interest
coupons and bearing the Global Securities Legend and the Restricted Securities
Legend (collectively, the "IAI Global Security") shall also be issued on the
Closing Date, deposited with the Securities Custodian, and registered in the
name of the Depositary or a nominee of the Depositary, duly executed by the
Company and authenticated by the Trustee as provided in this Indenture to
accommodate transfers of beneficial interests in the Securities to IAIs
subsequent to the initial distribution. Beneficial ownership interests in the
Regulation S Global Security shall be transferred only to non-United States
persons under Regulation S, qualified institutional buyers under Rule 144A or
institutional accredited investors. The Rule 144A Global Security, the IAI
Global Security and the Regulation S Global Securities are each referred to
herein as a "Global Security" and are collectively referred to herein as "Global
Securities", provided, that the term "Global Security" when used in Sections
2.1(b)(third paragraph), 2.1(c), 2.3(g)(i), 2.3(h)(i) and 2.4 shall also include
any Security in global form issued in connection with a Registered Exchange
Offer. The aggregate principal amount of the Global Securities may from time to
time be increased or decreased by adjustments made on the records of the Trustee
and the Depositary or its nominee and on the schedules thereto as hereinafter
provided.

                  (c) Book-Entry Provisions. This Section 2.1(c) shall apply
only to a Global Security deposited with or on behalf of the Depositary.

                  The Company shall execute and the Trustee shall, in accordance
with this Section 2.1(c) and Section 2.2 and pursuant to an order of the Company
signed by two Officers, authenticate and deliver initially one or more Global
Securities that (i) shall be registered in the name of the Depositary for such
Global Security or Global Securities or the nominee of such Depositary and (ii)
shall be delivered by the Trustee to such Depositary or pursuant to such
Depositary's instructions or held by the Trustee as Securities Custodian.

                  Members of, or participants in, the Depositary ("Agent
Members") shall have no rights under this Indenture with respect to any Global
Security held on their behalf by the Depositary or by the Trustee as Securities
Custodian or under such Global Security, and the Depositary may be treated by
the Company, the Trustee and any agent of the Company or the Trustee as the
absolute owner of such Global Security for all purposes whatsoever.
Notwithstanding the foregoing, nothing herein shall prevent the Company, the
Trustee or any agent of the Company or the Trustee from giving effect to any
written certification, proxy or other authorization furnished by the Depositary
or impair, as between the Depositary and its

<PAGE>

                                                                               5

Agent Members, the operation of customary practices of such Depositary governing
the exercise of the rights of a holder of a beneficial interest in any Global
Security.

                  (d) Definitive Securities. Except as provided in Section 2.3
or 2.4, owners of beneficial interests in Global Securities will not be entitled
to receive physical delivery of certificated Securities.

         2.2 Authentication. The Trustee shall authenticate and make available
for delivery upon a written order of the Company signed by two Officers (a)
Original Securities for original issue on the date hereof in an aggregate
principal amount of $350,000,000, (b) subject to the terms of this Indenture,
Additional Securities in an unlimited aggregate principal amount and (c) the
Exchange Securities for issue only in a Registered Exchange Offer pursuant to a
Registration Agreement and for a like principal amount of Initial Securities
exchanged pursuant thereto. Such order shall specify the amount of the
Securities to be authenticated, the date on which the original issue of
Securities is to be authenticated and whether the Securities are to be Initial
Securities or Exchange Securities. The aggregate principal amount of Securities
outstanding at any time is unlimited.

                  2.3 Transfer and Exchange. (a) Transfer and Exchange of
Definitive Securities. When Definitive Securities are presented to the Registrar
with a request:

                  (i) to register the transfer of such Definitive Securities; or

                  (ii) to exchange such Definitive Securities for an equal
         principal amount of Definitive Securities of other authorized
         denominations,

the Registrar shall register the transfer or make the exchange as requested if
its reasonable requirements for such transaction are met; provided, however,
that the Definitive Securities surrendered for transfer or exchange:

                  (1) shall be duly endorsed or accompanied by a written
         instrument of transfer in form reasonably satisfactory to the Company
         and the Registrar, duly executed by the Holder thereof or his attorney
         duly authorized in writing; and

                  (2) in the case of Transfer Restricted Securities, are
         accompanied by the following additional information and documents, as
         applicable:

                           (A) if such Definitive Securities are being delivered
                  to the Registrar by a Holder for registration in the name of
                  such Holder, without transfer, a certification from such
                  Holder to that effect (in the form set forth on the reverse
                  side of the Initial Security); or

<PAGE>

                                                                               6

                           (B) if such Definitive Securities are being
                  transferred to the Company, a certification to that effect (in
                  the form set forth on the reverse side of the Initial
                  Security); or

                           (C) if such Definitive Securities are being
                  transferred pursuant to an exemption from registration in
                  accordance with Rule 144 under the Securities Act or in
                  reliance upon another exemption from the registration
                  requirements of the Securities Act, (x) a certification to
                  that effect (in the form set forth on the reverse side of the
                  Initial Security) and (y) if the Company so requests, an
                  opinion of counsel or other evidence reasonably satisfactory
                  to it as to the compliance with the restrictions set forth in
                  the legend set forth in Section 2.3(e)(i).

                  (b) Restrictions on Transfer of a Definitive Security for a
Beneficial Interest in a Global Security. A Definitive Security may not be
exchanged for a beneficial interest in a Global Security except upon
satisfaction of the requirements set forth below. Upon receipt by the Trustee of
a Definitive Security, duly endorsed or accompanied by a written instrument of
transfer in form reasonably satisfactory to the Company and the Registrar,
together with:

                  (i) certification (in the form set forth on the reverse side
         of the Initial Security) that such Definitive Security is being
         transferred (1) to a QIB in accordance with Rule 144A, (2) to an IAI
         that has furnished to the Trustee a signed letter substantially in the
         form of Exhibit E or (3) outside the United States in an offshore
         transaction within the meaning of Regulation S and in compliance with
         Rule 904 under the Securities Act; and

                  (ii) written instructions directing the Trustee to make, or to
         direct the Securities Custodian to make, an adjustment on its books and
         records with respect to such Global Security to reflect an increase in
         the aggregate principal amount of the Securities represented by the
         Global Security, such instructions to contain information regarding the
         Depositary account to be credited with such increase, then the Trustee
         shall cancel such Definitive Security and cause, or direct the
         Securities Custodian to cause, in accordance with the standing
         instructions and procedures existing between the Depositary and the
         Securities Custodian, the aggregate principal amount of Securities
         represented by the Global Security to be increased by the aggregate
         principal amount of the Definitive Security to be exchanged and shall
         credit or cause to be credited to the account of the Person specified
         in such instructions a beneficial interest in the Global Security equal
         to the principal amount of the Definitive Security so canceled. If no
         Global Securities are then outstanding and the Global Security has not
         been previously exchanged for certificated securities pursuant to
         Section 2.4, the Company shall issue and the Trustee shall
         authenticate, upon written order of the

<PAGE>

                                                                               7

         Company in the form of an Officers' Certificate, a new Global Security
         in the appropriate principal amount.

                  (c) Transfer and Exchange of Global Securities. (i) The
transfer and exchange of Global Securities or beneficial interests therein shall
be effected through the Depositary, in accordance with this Indenture (including
applicable restrictions on transfer set forth herein, if any) and the procedures
of the Depositary therefor. A transferor of a beneficial interest in a Global
Security shall deliver a written order given in accordance with the Depositary's
procedures containing information regarding the participant account of the
Depositary to be credited with a beneficial interest in such Global Security or
another Global Security and such account shall be credited in accordance with
such order with a beneficial interest in the applicable Global Security and the
account of the Person making the transfer shall be debited by an amount equal to
the beneficial interest in the Global Security being transferred. Transfers by
an owner of a beneficial interest in the Rule 144A Global Security or the IAI
Global Security to a transferee who takes delivery of such interest through the
Regulation S Global Security, whether before or after the expiration of the
Restricted Period, shall be made only upon receipt by the Trustee of a
certification in the form provided on the reverse of the Initial Securities from
the transferor to the effect that such transfer is being made in accordance with
Regulation S or (if available) Rule 144 under the Securities Act and that, if
such transfer is being made prior to the expiration of the Restricted Period,
the interest transferred shall be held immediately thereafter through Euroclear
or Clearstream. In the case of a transfer of a beneficial interest in either the
Regulation S Global Security or the Rule 144A Global Security for an interest in
the IAI Global Security, the transferee must furnish a signed letter
substantially in the form of Exhibit D to the Trustee.

                  (ii) If the proposed transfer is a transfer of a beneficial
         interest in one Global Security to a beneficial interest in another
         Global Security, the Registrar shall reflect on its books and records
         the date and an increase in the principal amount of the Global Security
         to which such interest is being transferred in an amount equal to the
         principal amount of the interest to be so transferred, and the
         Registrar shall reflect on its books and records the date and a
         corresponding decrease in the principal amount of Global Security from
         which such interest is being transferred.

                 (iii) Notwithstanding any other provisions of this Appendix
         (other than the provisions set forth in Section 2.4), a Global Security
         may not be transferred as a whole except by the Depositary to a nominee
         of the Depositary or by a nominee of the Depositary to the Depositary
         or another nominee of the Depositary or by the Depositary or any such
         nominee to a successor Depositary or a nominee of such successor
         Depositary.

                  (iv) In the event that a Global Security is exchanged for
         Definitive Securities pursuant to Section 2.4 prior to the consummation
         of a Registered Exchange Offer or the effectiveness of a Shelf
         Registration Statement with respect to such Securities,

<PAGE>

                                                                               8

         such Securities may be exchanged only in accordance with such
         procedures as are substantially consistent with the provisions of this
         Section 2.3 (including the certification requirements set forth on the
         reverse of the Initial Securities intended to ensure that such
         transfers comply with Rule 144A, Regulation S or such other applicable
         exemption from registration under the Securities Act, as the case may
         be) and such other procedures as may from time to time be adopted by
         the Company.

                  (d) Restrictions on Transfer of Regulation S Global Security.
(i) Prior to the expiration of the Restricted Period, interests in the
Regulation S Temporary Global Security may only be held through Euroclear or
Clearstream. During the Restricted Period, beneficial ownership interests in the
Regulation S Temporary Global Security may only be sold, pledged or transferred
through Euroclear or Clearstream in accordance with the Applicable Procedures
and only (1) to the Company, (2) so long as such security is eligible for resale
pursuant to Rule 144A, to a person whom the selling holder reasonably believes
is a QIB that purchases for its own account or for the account of a QIB to whom
notice is given that the resale, pledge or transfer is being made in reliance on
Rule 144A, (3) in an offshore transaction in accordance with Regulation S, (4)
pursuant to an exemption from registration under the Securities Act provided by
Rule 144 (if applicable) under the Securities Act, (5) to an IAI purchasing for
its own account, or for the account of such an IAI, in a minimum principal
amount of Securities of $250,000 or (6) pursuant to an effective registration
statement under the Securities Act, in each case in accordance with any
applicable securities laws of any state of the United States. Prior to the
expiration of the Restricted Period, transfers by an owner of a beneficial
interest in the Regulation S Temporary Global Security to a transferee who takes
delivery of such interest through the Rule 144A Global Security or the IAI
Global Security shall be made only in accordance with Applicable Procedures and
upon receipt by the Trustee of a written certification from the transferor of
the beneficial interest in the form provided on the reverse of the Initial
Security to the effect that such transfer is being made to (1) a QIB within the
meaning of Rule 144A in a transaction meeting the requirements of Rule 144A or
(2) an IAI purchasing for its own account, or for the account of such an IAI, in
a minimum principal amount of the Securities of $250,000. Such written
certification shall no longer be required after the expiration of the Restricted
Period. In the case of a transfer of a beneficial interest in the Regulation S
Global Security for an interest in the IAI Global Security, the transferee must
furnish a signed letter substantially in the form of Exhibit D to the Trustee.

                  (ii) Upon the expiration of the Restricted Period, beneficial
         ownership interests in the Regulation S Temporary Global Security shall
         be exchangeable for beneficial interests in the Regulation S Permanent
         Global Security upon certification that those interests are owned
         either by non-United States persons or by United States persons who
         purchased those interests pursuant to an exemption from, or in
         transactions not subject to the registration requirements of the
         Securities Act of 1933. The Regulation S Permanent Global Security
         shall be transferable in accordance with applicable law and the other
         terms of this Indenture. Interests in the Regulation S

<PAGE>

                                                                               9

         Permanent Global Security may be held directly through Euroclear or
         Clearstream, if they are participants in those systems, or indirectly
         through organizations that are participants in those systems. Upon the
         expiration of the Restricted Period, interests in the Regulation S
         Permanent Global Security may be held through organizations other than
         Euroclear or Clearstream that are DTC participants. Each of Euroclear
         and Clearstream will appoint a DTC participant to act as its depositary
         for the interests in each Regulation S Global Security that are held
         within DTC for the account of each settlement system on behalf of its
         participants.

                  (e) Legend.

                  (i) Except as permitted by the following paragraphs (ii),
         (iii) or (iv), each Security certificate evidencing the Global
         Securities and the Definitive Securities (and all Securities issued in
         exchange therefor or in substitution thereof) shall bear a legend in
         substantially the following form (each defined term in the legend being
         defined as such for purposes of the legend only):

         "THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
         1933, AS AMENDED (THE "SECURITIES ACT"), OR THE SECURITIES LAWS OF ANY
         STATE OR OTHER JURISDICTION. NEITHER THIS SECURITY NOR ANY INTEREST OR
         PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED,
         PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH
         REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT
         TO, SUCH REGISTRATION.

                  THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE THE HOLDER OF
         THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR
         OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE (THE "RESALE
         RESTRICTION TERMINATION DATE") WHICH IS TWO YEARS AFTER THE LATER OF
         THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE COMPANY
         OR ANY AFFILIATE OF THE COMPANY WAS THE OWNER OF THIS SECURITY (OR ANY
         PREDECESSOR OF SUCH SECURITY), ONLY (A) TO THE COMPANY, (B) PURSUANT TO
         A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE
         SECURITIES ACT, (C) FOR SO LONG AS THE SECURITIES ARE ELIGIBLE FOR
         RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT ("RULE 144A"), TO
         A PERSON IT REASONABLY BELIEVES IS A "QUALIFIED INSTITUTIONAL BUYER" AS
         DEFINED IN RULE 144A THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE
         ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT
         THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (D) PURSUANT TO
         OFFERS AND SALES THAT OCCUR

<PAGE>
                                                                              10

         OUTSIDE THE UNITED STATES WITHIN THE MEANING OF REGULATION S UNDER THE
         SECURITIES ACT, (E) TO AN "ACCREDITED INVESTOR" WITHIN THE MEANING OF
         RULE 501(a)(1), (2), (3) OR (7) UNDER THE SECURITIES ACT THAT IS AN
         INSTITUTIONAL ACCREDITED INVESTOR ACQUIRING THE SECURITY FOR ITS OWN
         ACCOUNT OR FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL ACCREDITED
         INVESTOR, IN EACH CASE IN A MINIMUM PRINCIPAL AMOUNT OF THE SECURITIES
         OF $250,000, FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO OR FOR
         OFFER OR SALE IN CONNECTION WITH ANY DISTRIBUTION IN VIOLATION OF THE
         SECURITIES ACT OR (F) PURSUANT TO ANY OTHER AVAILABLE EXEMPTION FROM
         THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE
         COMPANY'S AND THE TRUSTEE'S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR
         TRANSFER PURSUANT TO CLAUSES (D), (E) OR (F) TO REQUIRE THE DELIVERY OF
         AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION
         SATISFACTORY TO EACH OF THEM. THIS LEGEND WILL BE REMOVED UPON THE
         REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE."

Each Definitive Security shall bear the following additional legend:

         "IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE
         REGISTRAR AND TRANSFER AGENT SUCH CERTIFICATES AND OTHER INFORMATION AS
         SUCH TRANSFER AGENT MAY REASONABLY REQUIRE TO CONFIRM THAT THE TRANSFER
         COMPLIES WITH THE FOREGOING RESTRICTIONS."

                  (ii) Upon any sale or transfer of a Transfer Restricted
         Security that is a Definitive Security, the Registrar shall permit the
         Holder thereof to exchange such Transfer Restricted Security for a
         Definitive Security that does not bear the legends set forth above and
         rescind any restriction on the transfer of such Transfer Restricted
         Security if the Holder certifies in writing to the Registrar that its
         request for such exchange was made in reliance on Rule 144 (such
         certification to be in the form set forth on the reverse of the Initial
         Security).

                  (iii) After a transfer of any Original or Additional
         Securities during the period of the effectiveness of a Shelf
         Registration Statement with respect to such Original or Additional
         Securities, as the case may be, all requirements pertaining to the
         Restricted Securities Legend on such Original or Additional Securities
         shall cease to apply and the requirements that any such Original or
         Additional Securities be issued in global form shall continue to apply.

<PAGE>

                                                                              11

                  (iv) Upon the consummation of a Registered Exchange Offer with
         respect to the Original or Additional Securities pursuant to which
         Holders of such Original or Additional Securities are offered Exchange
         Securities in exchange for their Original or Additional Securities, all
         requirements pertaining to Original or Additional Securities that
         Original or Additional Securities be issued in global form shall
         continue to apply, and Exchange Securities in global form without the
         Restricted Securities Legend shall be available to Holders that
         exchange such Initial Securities in such Registered Exchange Offer.

                  (v) Upon a sale or transfer after the expiration of the
         Restricted Period of any Initial Security acquired pursuant to
         Regulation S, all requirements that such Initial Security bear the
         Restricted Securities Legend shall cease to apply and the requirements
         requiring any such Initial Security be issued in global form shall
         continue to apply.

                  (vi) Any Additional Securities sold in a registered offering
         shall not be required to bear the Restricted Securities Legend.

                  (f) Cancelation or Adjustment of Global Security. At such time
as all beneficial interests in a Global Security have either been exchanged for
Definitive Securities, transferred, redeemed, repurchased or canceled, such
Global Security shall be returned by the Depositary to the Trustee for
cancelation or retained and canceled by the Trustee. At any time prior to such
cancelation, if any beneficial interest in a Global Security is exchanged for
Definitive Securities, transferred in exchange for an interest in another Global
Security, redeemed, repurchased or canceled, the principal amount of Securities
represented by such Global Security shall be reduced and an adjustment shall be
made on the books and records of the Trustee (if it is then the Securities
Custodian for such Global Security) with respect to such Global Security, by the
Trustee or the Securities Custodian, to reflect such reduction.

                  (g) Obligations with Respect to Transfers and Exchanges of
         Securities.

                  (i) To permit registrations of transfers and exchanges, the
         Company shall execute and the Trustee shall authenticate, Definitive
         Securities and Global Securities at the Registrar's request.

                  (ii) No service charge shall be made for any registration of
         transfer or exchange, but the Company may require payment of a sum
         sufficient to cover any transfer tax, assessments, or similar
         governmental charge payable in connection therewith (other than any
         such transfer taxes, assessments or similar governmental charge payable
         upon exchanges pursuant to Sections 2.07, 3.06, 4.06, 4.08 and 9.05 of
         this Indenture).

<PAGE>
                                                                              12

                  (iii) Prior to the due presentation for registration of
         transfer of any Security, the Company, the Trustee, the Paying Agent or
         the Registrar may deem and treat the person in whose name a Security is
         registered as the absolute owner of such Security for the purpose of
         receiving payment of principal of and interest on such Security and for
         all other purposes whatsoever, whether or not such Security is overdue,
         and none of the Company, the Trustee, the Paying Agent or the Registrar
         shall be affected by notice to the contrary.

                  (iv) All Securities issued upon any transfer or exchange
         pursuant to the terms of this Indenture shall evidence the same debt
         and shall be entitled to the same benefits under this Indenture as the
         Securities surrendered upon such transfer or exchange.

                  (h) No Obligation of the Trustee.

                  (i) The Trustee shall have no responsibility or obligation to
         any beneficial owner of a Global Security, a member of, or a
         participant in the Depositary or any other Person with respect to the
         accuracy of the records of the Depositary or its nominee or of any
         participant or member thereof, with respect to any ownership interest
         in the Securities or with respect to the delivery to any participant,
         member, beneficial owner or other Person (other than the Depositary) of
         any notice (including any notice of redemption or repurchase) or the
         payment of any amount, under or with respect to such Securities. All
         notices and communications to be given to the Holders and all payments
         to be made to Holders under the Securities shall be given or made only
         to the registered Holders (which shall be the Depositary or its nominee
         in the case of a Global Security). The rights of beneficial owners in
         any Global Security shall be exercised only through the Depositary
         subject to the applicable rules and procedures of the Depositary. The
         Trustee may rely and shall be fully protected in relying upon
         information furnished by the Depositary with respect to its members,
         participants and any beneficial owners.

                  (ii) The Trustee shall have no obligation or duty to monitor,
         determine or inquire as to compliance with any restrictions on transfer
         imposed under this Indenture or under applicable law with respect to
         any transfer of any interest in any Security (including any transfers
         between or among Depositary participants, members or beneficial owners
         in any Global Security) other than to require delivery of such
         certificates and other documentation or evidence as are expressly
         required by, and to do so if and when expressly required by, the terms
         of this Indenture, and to examine the same to determine substantial
         compliance as to form with the express requirements hereof.

<PAGE>

                                                                              13

         2.4  Definitive Securities

                  (a) A Global Security deposited with the Depositary or with
the Trustee as Securities Custodian pursuant to Section 2.1 or issued in
connection with a Registered Exchange Offer shall be transferred to the
beneficial owners thereof in the form of Definitive Securities in an aggregate
principal amount equal to the principal amount of such Global Security, in
exchange for such Global Security, only if such transfer complies with Section
2.3 and (i) the Depositary notifies the Company that it is unwilling or unable
to continue as a Depositary for such Global Security or if at any time the
Depositary ceases to be a "clearing agency" registered under the Exchange Act,
and a successor depositary is not appointed by the Company within 90 days of
such notice or after the Company becomes aware of such cessation, or (ii) an
Event of Default has occurred and is continuing or (iii) the Company, in its
sole discretion, notifies the Trustee in writing that it elects to cause the
issuance of certificated Securities under this Indenture.

                  (b) Any Global Security that is transferable to the beneficial
owners thereof pursuant to this Section 2.4 shall be surrendered by the
Depositary to the Trustee, to be so transferred, in whole or from time to time
in part, without charge, and the Trustee shall authenticate and deliver, upon
such transfer of each portion of such Global Security, an equal aggregate
principal amount of Definitive Securities of authorized denominations. Any
portion of a Global Security transferred pursuant to this Section shall be
executed, authenticated and delivered only in denominations of $1,000 and any
integral multiple thereof and registered in such names as the Depositary shall
direct. Any certificated Initial Security in the form of a Definitive Security
delivered in exchange for an interest in the Global Security shall, except as
otherwise provided by Section 2.3(e), bear the Restricted Securities Legend.

                  (c) Subject to the provisions of Section 2.4(b), the
registered Holder of a Global Security may grant proxies and otherwise authorize
any Person, including Agent Members and Persons that may hold interests through
Agent Members, to take any action which a Holder is entitled to take under this
Indenture or the Securities.

                  (d) In the event of the occurrence of any of the events
specified in Section 2.4(a)(i), (ii) or (iii), the Company will promptly make
available to the Trustee a reasonable supply of Definitive Securities in fully
registered form without interest coupons.

<PAGE>
                                                                       EXHIBIT A

                       [FORM OF FACE OF ORIGINAL SECURITY]

                           [Global Securities Legend]

                  UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"),
NEW YORK, NEW YORK, TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF
CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC (AND ANY PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER
USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS
THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

                  TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO
TRANSFERS IN WHOLE, BUT NOT IN PART, TO DTC, TO NOMINEES OF DTC OR TO A
SUCCESSOR THEREOF OR SUCH SUCCESSOR'S NOMINEE AND TRANSFERS OF PORTIONS OF THIS
GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE
RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO ON THE REVERSE HEREOF.

                         [Restricted Securities Legend]

                  THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR THE SECURITIES LAWS OF ANY STATE
OR OTHER JURISDICTION. NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION
HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR
OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH
TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, SUCH REGISTRATION.

                  THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES TO
OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE (THE "RESALE
RESTRICTION TERMINATION DATE") WHICH IS TWO YEARS AFTER THE LATER OF THE
ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE COMPANY OR ANY
AFFILIATE OF THE COMPANY WAS THE OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF
SUCH SECURITY), ONLY (A) TO THE COMPANY, (B) PURSUANT TO A REGISTRATION
STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER

<PAGE>
                                                                               2

THE SECURITIES ACT, (C) FOR SO LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE
PURSUANT TO RULE 144A UNDER THE SECURITIES ACT ("RULE 144A"), TO A PERSON IT
REASONABLY BELIEVES IS A "QUALIFIED INSTITUTIONAL BUYER" AS DEFINED IN RULE 144A
THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED
INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN
RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS AND SALES THAT OCCUR OUTSIDE THE
UNITED STATES WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES ACT, (E)
TO AN "ACCREDITED INVESTOR" WITHIN THE MEANING OF RULE 501(a)(1), (2), (3) OR
(7) UNDER THE SECURITIES ACT THAT IS AN INSTITUTIONAL ACCREDITED INVESTOR
ACQUIRING THE SECURITY FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF SUCH AN
INSTITUTIONAL ACCREDITED INVESTOR, IN EACH CASE IN A MINIMUM PRINCIPAL AMOUNT OF
THE SECURITIES OF $250,000, FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO OR
FOR OFFER OR SALE IN CONNECTION WITH ANY DISTRIBUTION IN VIOLATION OF THE
SECURITIES ACT OR (F) PURSUANT TO ANY OTHER AVAILABLE EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE COMPANY'S AND
THE TRUSTEE'S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO
CLAUSES (D), (E) OR (F) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL,
CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM. THIS LEGEND
WILL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION
TERMINATION DATE.

Each Definitive Security shall bear the following additional legend:

IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE REGISTRAR AND
TRANSFER AGENT SUCH CERTIFICATES AND OTHER INFORMATION AS SUCH TRANSFER AGENT
MAY REASONABLY REQUIRE TO CONFIRM THAT THE TRANSFER COMPLIES WITH THE FOREGOING
RESTRICTIONS.

<PAGE>
No.                                                                 $__________

                           8 3/4% Senior Note due 2011

                                                                CUSIP No. ______
                                                                     ISIN No.___

                  LAND O'LAKES, INC., a Minnesota cooperative corporation,
promises to pay to [Cede & Co.], or registered assigns, the principal sum [of
Dollars] [listed on the Schedule of Increases or Decreases in Global Security
attached hereto] on [ ], [ ].

                  Interest Payment Dates: May 15 and November 15.

                  Record Dates:  [    ] and [    ].

<PAGE>
                                                                               2

                  Additional provisions of this Security are set forth on the
other side of this Security.

                  IN WITNESS WHEREOF, the parties have caused this instrument to
be duly executed.

                                        LAND O'LAKES, INC.,

                                         by

                                            ______________________________
                                            Name:
                                            Title:

                                         by

                                            ______________________________
                                            Name:
                                            Title:

Dated:

TRUSTEE'S CERTIFICATE OF
         AUTHENTICATION

U.S. BANK N.A.,

         as Trustee, certifies
         that this is one of
         the Securities referred
         to in the Indenture.

By:_________________________
         Authorized Signatory

________________
*/ If the Security is to be issued in global form, add the Global Securities
Legend and the attachment from Exhibit A captioned "TO BE ATTACHED TO GLOBAL
SECURITIES - SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY".

<PAGE>

                   [FORM OF REVERSE SIDE OF ORIGINAL SECURITY]

                           8 3/4% Senior Note due 2011

1.  Interest

                  (a) LAND O'LAKES, INC., a Minnesota cooperative corporation
(such corporation, and its successors and assigns under the Indenture
hereinafter referred to, being herein called the "Company"), promises to pay
interest on the principal amount of this Security at the rate per annum shown
above. The Company shall pay interest semiannually on May 15 and November 15 of
each year. Interest on the Securities shall accrue from the most recent date to
which interest has been paid or duly provided for or, if no interest has been
paid or duly provided for, from November 14, 2001 until the principal hereof is
due. Interest shall be computed on the basis of a 360-day year of twelve 30-day
months.

                  (b) Additional Interest. The Holder of this Security is
entitled to the benefits of an Exchange and Registration Rights Agreement, dated
as of November 8, 2001, among the Company, the Subsidiary Guarantors and the
Initial Purchasers named therein (the "Registration Agreement"). Capitalized
terms used in this paragraph (b) but not defined herein have the meanings
assigned to them in the Registration Agreement. If the Registered Exchange Offer
is not completed or a Shelf Registration Statement is not declared effective on
or before the date that is 225 days after November 14, 2001, the annual interest
rate borne by the Securities will be increased by 0.25% per annum with an
additional 0.25% per annum increase each 90 days thereafter up to a maximum
increase of 1.0% per annum until the Registered Exchange Offer is completed or
the Shelf Registration Statement is declared effective. For purposes of the
foregoing, "Transfer Restricted Securities" means (i) each Initial Security
until the date on which such Initial Security has been exchanged for a freely
transferable Exchange Security in the Registered Exchange Offer, (ii) each
Initial Security until the date on which such Initial Security has been
effectively registered under the Securities Act and disposed of in accordance
with a Shelf Registration Statement or (iii) each Initial Security until the
date on which such Initial Security is distributed to the public pursuant to
Rule 144 under the Securities Act or is saleable pursuant to Rule 144(k) under
the Securities Act.

2.  Method of Payment

                  The Company shall pay interest on the Securities (except
defaulted interest) to the Persons who are registered Holders at the close of
business on the May 1 or November 1 next preceding the interest payment date
even if Securities are canceled after the record date and on or before the
interest payment date. Holders must surrender Securities to a Paying Agent to
collect principal payments. The Company shall pay principal, premium, if any,
and interest in money of the United States of America that at the time of
payment is legal tender

<PAGE>
                                                                               4

for payment of public and private debts. Payments in respect of the Securities
represented by a Global Security (including principal, premium, if any, and
interest) shall be made by wire transfer of immediately available funds to the
accounts specified by The Depository Trust Company or any successor depositary.
The Company will make all payments in respect of a certificated Security
(including principal, premium, if any, and interest), at the office of the
Paying Agent, except that, at the option of the Company, payment of interest may
be made by mailing a check to the registered address of each Holder thereof;
provided, however, that payments on the Securities may also be made, in the case
of a Holder of at least $1,000,000 aggregate principal amount of Securities, by
wire transfer to a U.S. dollar account maintained by the payee with a bank in
the United States if such Holder elects payment by wire transfer by giving
written notice to the Trustee or the Paying Agent to such effect designating
such account no later than 30 days immediately preceding the relevant due date
for payment (or such other date as the Trustee may accept in its discretion).

3.  Paying Agent and Registrar

                  Initially, U.S. BANK N.A., a national banking association (the
"Trustee"), will act as Paying Agent and Registrar. The Company may appoint and
change any Paying Agent or Registrar without notice. The Company or any of its
domestically incorporated Wholly Owned Subsidiaries may act as Paying Agent or
Registrar.

4.  Indenture

                  The Company issued the Securities under an Indenture dated as
of November 14, 2001 (the "Indenture"), among the Company, the Subsidiary
Guarantors and the Trustee. The terms of the Securities include those stated in
the Indenture and those made part of the Indenture by reference to the Trust
Indenture Act of 1939 (15 U.S.C. ss.ss. 77aaa-77bbbb) as in effect on the date
of the Indenture (the "TIA"). Terms defined in the Indenture and not defined
herein have the meanings ascribed thereto in the Indenture. The Securities are
subject to all terms and provisions of the Indenture, and Holders (as defined in
the Indenture) are referred to the Indenture and the TIA for a statement of such
terms and provisions.

                  The Securities are senior unsecured obligations of the
Company. This Security is one of the [Original] [Additional] Securities referred
to in the Indenture. The Securities include the Original Securities, the
Additional Securities and any Exchange Securities issued in exchange for Initial
Securities pursuant to the Indenture. The Original Securities, the Additional
Securities and any Exchange Securities and Private Exchange Securities are
treated as a single class of securities under the Indenture. The Indenture
imposes certain limitations on the ability of the Company and its Restricted
Subsidiaries to, among other things, make certain Investments and other
Restricted Payments, pay dividends and other distributions, incur Indebtedness,
enter into consensual restrictions upon the payment of certain dividends and
distributions by such Restricted Subsidiaries, issue or sell

<PAGE>
                                                                               5

shares of capital stock of such Restricted Subsidiaries, enter into or permit
certain transactions with Affiliates, create or incur Liens and make asset
sales. The Indenture also imposes limitations on the ability of the Company and
each Subsidiary Guarantor to consolidate or merge with or into any other Person
or convey, transfer or lease all or substantially all its property.

                  To guarantee the due and punctual payment of the principal and
interest on the Securities and all other amounts payable by the Company under
the Indenture and the Securities when and as the same shall be due and payable,
whether at maturity, by acceleration or otherwise, according to the terms of the
Securities and the Indenture, the Subsidiary Guarantors have jointly and
severally unconditionally guaranteed the Guaranteed Obligations on a senior
basis pursuant to the terms of the Indenture.

5.  Optional Redemption

                  Except as set forth in the following paragraph, the Securities
shall not be redeemable at the option of the Company prior to November 15, 2006.
Thereafter, the Securities shall be redeemable at the option of the Company, in
whole or from time to time in part, on not less than 30 nor more than 60 days
prior notice, at the following redemption prices (expressed as percentages of
principal amount), plus accrued and unpaid interest to the redemption date
(subject to the right of Holders of record on the relevant record date to
receive interest due on the relevant interest payment date), if redeemed during
the 12-month period commencing on November 15 of the years set forth below:

<TABLE>
<CAPTION>
                                                                     REDEMPTION
                  YEAR                                                  PRICE
                  --------------------------------------------------------------
<S>                                                                  <C>
                  2006                                                  104.775%
                  2007                                                  102.917%
                  2008                                                  101.458%
                  2009 and thereafter                                   100.000%
</TABLE>

6.  Sinking Fund

                  The Securities are not subject to any sinking fund.

7.  Notice of Redemption

                  Notice of redemption will be mailed by first-class mail at
least 30 days but not more than 60 days before the redemption date to each
Holder of Securities to be redeemed at his or her registered address. Securities
in denominations larger than $1,000 may be redeemed in part but only in whole
multiples of $1,000. If money sufficient to pay the redemption price of and
accrued and unpaid interest on all Securities (or portions thereof) to

<PAGE>
                                                                               6

be redeemed on the redemption date is deposited with the Paying Agent on or
before the redemption date and certain other conditions are satisfied, on and
after such date interest ceases to accrue on such Securities (or such portions
thereof) called for redemption.

8.       Repurchase of Securities at the Option of Holders upon Change of
         Control and Asset Dispositions

                  Upon a Change of Control, any Holder of Securities will have
the right, subject to certain conditions specified in the Indenture, to cause
the Company to repurchase all or any part of the Securities of such Holder at a
purchase price equal to 101% of the principal amount of the Securities to be
repurchased plus accrued and unpaid interest to the date of repurchase (subject
to the right of Holders of record on the relevant record date to receive
interest due on the relevant interest payment date that is on or prior to the
date of purchase) as provided in, and subject to the terms of, the Indenture.

                  In accordance with Section 4.06 of the Indenture, the Company
will be required to offer to purchase Securities upon the occurrence of certain
events.

9.  Denominations; Transfer; Exchange

                  The Securities are in registered form without coupons in
denominations of $1,000 and whole multiples of $1,000. A Holder may transfer or
exchange Securities in accordance with the Indenture. Upon any transfer or
exchange, the Registrar and the Trustee may require a Holder, among other
things, to furnish appropriate endorsements or transfer documents and to pay any
taxes required by law or permitted by the Indenture. The Registrar need not
register the transfer of or exchange any Securities selected for redemption
(except, in the case of a Security to be redeemed in part, the portion of the
Security not to be redeemed) or to transfer or exchange any Securities for a
period of 15 days prior to a selection of Securities to be redeemed.

10.  Persons Deemed Owners

                  Except as provided in paragraph 2 hereof, the registered
Holder of this Security may be treated as the owner of it for all purposes.

11.  Unclaimed Money

                  If money for the payment principal or interest remains
unclaimed for two years, the Trustee and the Paying Agent shall pay the money
back to the Company at its written request unless an abandoned property law
designates another Person. After any such payment, Holders entitled to the money
must look to the Company for payment as general creditors and the Trustee and
the Paying Agent shall have no further liability with respect to such monies.

<PAGE>
                                                                               7

12.  Discharge and Defeasance

                  Subject to certain conditions, the Company at any time may
terminate some of or all its obligations under the Securities and the Indenture
if the Company deposits with the Trustee money or U.S. Government Obligations
for the payment of principal of, and interest on, the Securities to redemption
or maturity, as the case may be.

13.  Amendment, Waiver

                  Subject to certain exceptions set forth in the Indenture, (i)
the Indenture or the Securities may be amended without prior notice to any
Holder but with the written consent of the Holders of at least a majority in
aggregate principal amount of the outstanding Securities and (ii) any default
may be waived with the written consent of the Holders of at least a majority in
principal amount of the outstanding Securities. Subject to certain exceptions
set forth in the Indenture, without the consent of any Holder, the Company, the
Subsidiary Guarantors and the Trustee may amend the Indenture or the Securities
(i) to cure any ambiguity, omission, defect or inconsistency; (ii) to comply
with Article 5 of the Indenture; (iii) to provide for uncertificated Securities
in addition to or in place of certificated Securities; (iv) to add Subsidiary
Guarantees with respect to the Securities; (v) to secure the Securities; (vi) to
add additional covenants or to surrender rights and powers conferred on the
Company; (vii) to comply with the requirements of the SEC in order to effect or
maintain the qualification of the Indenture under the TIA; (viii) to make any
change that does not adversely affect the rights of any Holder; or (ix) to
provide for the issuance of the Exchange Securities or Additional Securities.

14.  Defaults and Remedies

                  If an Event of Default occurs (other than an Event of Default
relating to certain events of bankruptcy, insolvency or reorganization of the
Company) and is continuing, the Trustee or the Holders of at least 25% in
principal amount of the outstanding Securities may declare the principal of and
accrued but unpaid interest on all the Securities to be due and payable. If an
Event of Default relating to certain events of bankruptcy, insolvency or
reorganization of the Company occurs, the principal of and interest on all the
Securities shall become immediately due and payable without any declaration or
other act on the part of the Trustee or any Holders. Under certain
circumstances, the Holders of a majority in principal amount of the outstanding
Securities may rescind any such acceleration with respect to the Securities and
its consequences.

                  If an Event of Default occurs and is continuing, the Trustee
shall be under no obligation to exercise any of the rights or powers under the
Indenture at the request or direction of any of the Holders unless such Holders
have offered to the Trustee reasonable indemnity or security against any loss,
liability or expense and certain other conditions are complied with. Except to
enforce the right to receive payment of principal, premium (if any)

<PAGE>
                                                                               8

or interest when due, no Holder may pursue any remedy with respect to the
Indenture or the Securities unless (i) such Holder has previously given the
Trustee notice that an Event of Default is continuing, (ii) Holders of at least
25% in principal amount of the outstanding Securities have requested the Trustee
in writing to pursue the remedy, (iii) such Holders have offered the Trustee
reasonable security or indemnity against any loss, liability or expense, (iv)
the Trustee has not complied with such request within 60 days after the receipt
of the request and the offer of security or indemnity and (v) the Holders of a
majority in principal amount of the outstanding Securities have not given the
Trustee a direction inconsistent with such request within such 60-day period.
Subject to certain restrictions, the Holders of a majority in principal amount
of the outstanding Securities are given the right to direct the time, method and
place of conducting any proceeding for any remedy available to the Trustee or of
exercising any trust or power conferred on the Trustee. The Trustee, however,
may refuse to follow any direction that conflicts with law or the Indenture or
that the Trustee determines is unduly prejudicial to the rights of any other
Holder or that would involve the Trustee in personal liability. Prior to taking
any action under the Indenture, the Trustee shall be entitled to indemnification
satisfactory to it in its sole discretion against all losses and expenses caused
by taking or not taking such action.

15.  Trustee Dealings with the Company

                  Subject to certain limitations imposed by the TIA, the Trustee
under the Indenture, in its individual or any other capacity, may become the
owner or pledgee of Securities and may otherwise deal with and collect
obligations owed to it by the Company or its Affiliates and may otherwise deal
with the Company or its Affiliates with the same rights it would have if it were
not Trustee.

16.  No Recourse Against Others

                  A director, officer, employee or stockholder, as such, of the
Company or any Subsidiary Guarantor shall not have any liability for any
obligations of the Company under the Securities or the Indenture or for any
claim based on, in respect of or by reason of such obligations or their
creation. By accepting a Security, each Holder waives and releases all such
liability. The waiver and release are part of the consideration for the issue of
the Securities.

17.  Authentication

                  This Security shall not be valid until an authorized signatory
of the Trustee (or an authenticating agent) manually signs the certificate of
authentication on the other side of this Security.

<PAGE>
                                                                               9

18.  Abbreviations

                  Customary abbreviations may be used in the name of a Holder or
an assignee, such as TEN COM (=tenants in common), TEN ENT (=tenants by the
entireties), JT TEN (=joint tenants with rights of survivorship and not as
tenants in common), CUST (=custodian), and U/G/M/A (=Uniform Gift to Minors
Act).

19.  Governing Law

                  THIS SECURITY SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK BUT WITH OUT GIVING EFFECT TO
APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF
THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

20.  CUSIP and ISIN Numbers

                  The Company has caused CUSIP and ISIN numbers to be printed on
the Securities and has directed the Trustee to use CUSIP and ISIN numbers in
notices of redemption as a convenience to Holders. No representation is made as
to the accuracy of such numbers either as printed on the Securities or as
contained in any notice of redemption and reliance may be placed only on the
other identification numbers placed thereon.

                  THE COMPANY WILL FURNISH TO ANY HOLDER OF SECURITIES UPON
WRITTEN REQUEST AND WITHOUT CHARGE TO THE HOLDER A COPY OF THE INDENTURE WHICH
HAS IN IT THE TEXT OF THIS SECURITY.

<PAGE>

                                                                              10

                                 ASSIGNMENT FORM

To assign this Security, fill in the form below:

I or we assign and transfer this Security to

         (Print or type assignee's name, address and zip code)

         (Insert assignee's soc. sec. or tax I.D. No.)

and irrevocably appoint                 agent to transfer this Security on the
books of the Company. The agent may substitute another to act for him.

____________________________________________________________

Date: ________________ Your Signature: _____________________

_______________________________________________________________________________
Sign exactly as your name appears on the other side of this Security.

<PAGE>
                                                                              11

          CERTIFICATE TO BE DELIVERED UPON EXCHANGE OR REGISTRATION OF
                         TRANSFER RESTRICTED SECURITIES

This certificate relates to $_________ principal amount of Securities held in
(check applicable space) ____ book-entry or _____ definitive form by the
undersigned.

The undersigned (check one box below):

[ ]      has requested the Trustee by written order to deliver in exchange for
         its beneficial interest in the Global Security held by the Depositary a
         Security or Securities in definitive, registered form of authorized
         denominations and an aggregate principal amount equal to its beneficial
         interest in such Global Security (or the portion thereof indicated
         above);

[ ]      has requested the Trustee by written order to exchange or register the
         transfer of a Security or Securities.

In connection with any transfer of any of the Securities evidenced by this
certificate occurring prior to the expiration of the period referred to in Rule
144(k) under the Securities Act, the undersigned confirms that such Securities
are being transferred in accordance with its terms:

CHECK ONE BOX BELOW

         (1)     [ ]       to the Company; or

         (2)     [ ]       to the Registrar for registration in the name of the
                           Holder, without transfer; or

         (3)     [ ]       pursuant to an effective registration statement under
                           the Securities Act of 1933; or

         (4)     [ ]       inside the United States to a "qualified
                           institutional buyer" (as defined in Rule 144A under
                           the Securities Act of 1933) that purchases for its
                           own account or for the account of a qualified
                           institutional buyer to whom notice is given that such
                           transfer is being made in reliance on Rule 144A, in
                           each case pursuant to and in compliance with Rule
                           144A under the Securities Act of 1933; or

         (5)     [ ]       outside the United States in an offshore transaction
                           within the meaning of Regulation S under the
                           Securities Act in compliance with Rule 904 under the
                           Securities Act of 1933 and such Security shall be
                           held

<PAGE>
                                                                              12

                           immediately after the transfer through Euroclear or
                           Clearstream until the expiration of the Restricted
                           Period (as defined in the Indenture); or

         (6)     [ ]       to an institutional "accredited investor" (as defined
                           in Rule 501(a)(1), (2), (3) or (7) under the
                           Securities Act of 1933) that has furnished to the
                           Trustee a signed letter containing certain
                           representations and agreements; or

         (7)     [ ]       pursuant to another available exemption from
                           registration provided by Rule 144 under the
                           Securities Act of 1933.

         Unless one of the boxes is checked, the Trustee will refuse to register
         any of the Securities evidenced by this certificate in the name of any
         Person other than the registered Holder thereof; provided, however,
         that if box (5), (6) or (7) is checked, the Trustee may require, prior
         to registering any such transfer of the Securities, such legal
         opinions, certifications and other information as the Company has
         reasonably requested to confirm that such transfer is being made
         pursuant to an exemption from, or in a transaction not subject to, the
         registration requirements of the Securities Act of 1933.

                                                __________________________
                                                Your Signature

Signature Guarantee:

Date: ___________________               ________________________________
Signature must be guaranteed                    Signature of Signature
by a participant in a                           Guarantee
recognized signature guaranty
medallion program or other
signature guarantor acceptable
to the Trustee

________________________________________________________________________________

<PAGE>
                                                                              13

              TO BE COMPLETED BY PURCHASER IF (4) ABOVE IS CHECKED.

                  The undersigned represents and warrants that it is purchasing
this Security for its own account or an account with respect to which it
exercises sole investment discretion and that it and any such account is a
"qualified institutional buyer" within the meaning of Rule 144A under the
Securities Act of 1933, and is aware that the sale to it is being made in
reliance on Rule 144A and acknowledges that it has received such information
regarding the Company as the undersigned has requested pursuant to Rule 144A or
has determined not to request such information and that it is aware that the
transferor is relying upon the undersigned's foregoing representations in order
to claim the exemption from registration provided by Rule 144A.

Dated: ________________              __________________________________
                                            NOTICE:   To be executed by
                                                   an executive officer

<PAGE>
                                                                              14

                      [TO BE ATTACHED TO GLOBAL SECURITIES]

              SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY

                The initial principal amount of this Global Security is $[    ].
The following increases or decreases in this Global Security have been made:

<TABLE>
<CAPTION>
Date of      Amount of decrease in         Amount of increase in         Principal amount of this       Signature of authorized
Exchange     Principal Amount of this      Principal Amount of this      Global Security following      signatory of Trustee or
             Global Security               Global Security               such decrease or increase      Securities Custodian
<S>          <C>                           <C>                           <C>                            <C>

</TABLE>

<PAGE>
                                                                              15

                       OPTION OF HOLDER TO ELECT PURCHASE

                           IF YOU WANT TO ELECT TO HAVE THIS SECURITY PURCHASED
BY THE COMPANY PURSUANT TO SECTION 4.06 (ASSET DISPOSITION) OR 4.08 (CHANGE OF
CONTROL) OF THE INDENTURE, CHECK THE BOX:

                   ASSET DISPOSITION [ ] CHANGE OF CONTROL [ ]

                           IF YOU WANT TO ELECT TO HAVE ONLY PART OF THIS
SECURITY PURCHASED BY THE COMPANY PURSUANT TO SECTION 4.06 OR 4.08 OF THE
INDENTURE, STATE THE AMOUNT ($1,000 OR AN INTEGRAL MULTIPLE THEREOF):

$

DATE: __________________ YOUR SIGNATURE: __________________
(SIGN EXACTLY AS YOUR NAME APPEARS ON THE OTHER SIDE OF THE SECURITY)

SIGNATURE GUARANTEE:_______________________________________
                           SIGNATURE MUST BE GUARANTEED BY A PARTICIPANT IN A
                           RECOGNIZED SIGNATURE GUARANTY MEDALLION PROGRAM OR
                           OTHER SIGNATURE GUARANTOR ACCEPTABLE TO THE TRUSTEE

<PAGE>
                                                                       EXHIBIT B

                       [FORM OF FACE OF EXCHANGE SECURITY]
                           [Global Securities Legend]

                  UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"),
NEW YORK, NEW YORK, TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF
CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC (AND ANY PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER
USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS
THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

                  TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO
TRANSFERS IN WHOLE, BUT NOT IN PART, TO DTC, TO NOMINEES OF DTC OR TO A
SUCCESSOR THEREOF OR SUCH SUCCESSOR'S NOMINEE AND TRANSFERS OF PORTIONS OF THIS
GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE
RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO ON THE REVERSE HEREOF.

<PAGE>
                                                                               2

No.                                                                  $__________

                           8 3/4% Senior Note due 2011

                                                                CUSIP No. ______
                                                                     ISIN No.___

                  LAND O'LAKES, INC., a Minnesota corporation, promises to pay
to [Cede & Co.], or registered assigns, the principal sum [of           Dollars]
[listed on the Schedule of Increases or Decreases in Global Security attached
hereto] on [ ], [ ].

                  Interest Payment Dates: May 15 and November 15.

                  Record Dates: [   ] and [        ].

<PAGE>
                                                                               3

                  Additional provisions of this Security are set forth on the
other side of this Security.

                  IN WITNESS WHEREOF, the parties have caused this instrument to
be duly executed.

                                   LAND O'LAKES, INC.,

                                    by
                                       ___________________________________
                                       Name:
                                       Title:

                                    by
                                       ___________________________________
                                       Name:
                                       Title:

Dated:

TRUSTEE'S CERTIFICATE OF
         AUTHENTICATION

U.S. BANK N.A.,

         as Trustee, certifies
         that this is one of
         the Securities referred
         to in the Indenture.

         by
             ___________________________________
                     Authorized Signatory

_______________
*/ If the Security is to be issued in global form, add the Global Securities
Legend and the attachment from Exhibit A captioned "TO BE ATTACHED TO GLOBAL
SECURITIES - SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY".

<PAGE>
                                                                               4

                   [FORM OF REVERSE SIDE OF EXCHANGE SECURITY]

                           8 3/4% Senior Note due 2011

1.  Interest.

                  LAND O'LAKES, INC., a Minnesota cooperative corporation (such
corporation, and its successors and assigns under the Indenture hereinafter
referred to, being herein called the "Company"), promises to pay interest on the
principal amount of this Security at the rate per annum shown above. The Company
shall pay interest semiannually on May 15 and November 15 of each year. Interest
on the Securities shall accrue from the most recent date to which interest has
been paid or duly provided for or, if no interest has been paid or duly provided
for, from November 14, 2001 until the principal hereof is due. Interest shall be
computed on the basis of a 360-day year of twelve 30-day months.

2.  Method of Payment

                  The Company shall pay interest on the Securities (except
defaulted interest) to the Persons who are registered Holders at the close of
business on the May 15 or November 15 next preceding the interest payment date
even if Securities are canceled after the record date and on or before the
interest payment date. Holders must surrender Securities to a Paying Agent to
collect principal payments. The Company shall pay principal, premium, if any,
and interest in money of the United States of America that at the time of
payment is legal tender for payment of public and private debts. Payments in
respect of the Securities represented by a Global Security (including principal,
premium and interest) shall be made by wire transfer of immediately available
funds to the accounts specified by The Depository Trust Company or any successor
depositary. The Company will make all payments in respect of a certificated
Security (including principal, premium, if any, and interest), at the office of
the Paying Agent, except that, at the option of the Company, payment of interest
may be made by mailing a check to the registered address of each Holder thereof;
provided, however, that payments on the Securities may also be made, in the case
of a Holder of at least $1,000,000 aggregate principal amount of Securities, by
wire transfer to a U.S. dollar account maintained by the payee with a bank in
the United States if such Holder elects payment by wire transfer by giving
written notice to the Trustee or the Paying Agent to such effect designating
such account no later than 30 days immediately preceding the relevant due date
for payment (or such other date as the Trustee may accept in its discretion).

3.  Paying Agent and Registrar

                  Initially, U.S. BANK N.A., a national banking association (the
"Trustee"), will act as Paying Agent and Registrar. The Company may appoint and
change any Paying Agent

<PAGE>
                                                                               5

or Registrar without notice. The Company or any of its domestically incorporated
Wholly Owned Subsidiaries may act as Paying Agent or Registrar.

4.  Indenture

                  The Company issued the Securities under an Indenture dated as
of November 14, 2001 (the "Indenture"), among the Company, the Subsidiary
Guarantors and the Trustee. The terms of the Securities include those stated in
the Indenture and those made part of the Indenture by reference to the Trust
Indenture Act of 1939 (15 U.S.C. ss. 77aaa-77bbbb) as in effect on the date
of the Indenture (the "TIA"). Terms defined in the Indenture and not defined
herein have the meanings ascribed thereto in the Indenture. The Securities are
subject to all terms and provisions of the Indenture, and Holders (as defined in
the Indenture) are referred to the Indenture and the TIA for a statement of such
terms and provisions.

                  The Securities are senior unsecured obligations of the
Company. This Security is one of the [Exchange] [Additional] Securities referred
to in the Indenture. The Securities include the Original Securities, the
Additional Securities and any Exchange Securities issued in exchange for the
Initial Securities pursuant to the Indenture. The Original Securities, the
Additional Securities and the Exchange Securities are treated as a single class
of securities under the Indenture. The Indenture imposes certain limitations on
the ability of the Company and its Restricted Subsidiaries to, among other
things, make certain Investments and other Restricted Payments, pay dividends
and other distributions, incur Indebtedness, enter into consensual restrictions
upon the payment of certain dividends and distributions by such Restricted
Subsidiaries, issue or sell shares of capital stock of such Restricted
Subsidiaries, enter into or permit certain transactions with Affiliates, create
or incur Liens and make Asset Sales. The Indenture also imposes limitations on
the ability of the Company and each Subsidiary Guarantor to consolidate or merge
with or into any other Person or convey, transfer or lease all or substantially
all of its property.

                  To guarantee the due and punctual payment of the principal and
interest, if any, on the Securities and all other amounts payable by the Company
under the Indenture and the Securities when and as the same shall be due and
payable, whether at maturity, by acceleration or otherwise, according to the
terms of the Securities and the Indenture, the Subsidiary Guarantors have,
jointly and severally, unconditionally guaranteed the Guaranteed Obligations on
a senior basis pursuant to the terms of the Indenture.

<PAGE>
                                                                               6

5.  Optional Redemption

                  Except as set forth in the following paragraph, the Securities
shall not be redeemable at the option of the Company prior to November 15, 2006.
Thereafter, the Securities shall be redeemable at the option of the Company, in
whole or from time to time in part, on not less than 30 nor more than 60 days
prior notice, at the following redemption prices (expressed as percentages of
principal amount), plus accrued and unpaid interest to the redemption date
(subject to the right of Holders of record on the relevant record date to
receive interest due on the relevant interest payment date), if redeemed during
the 12-month period commencing on November 15 of the years set forth below:

<TABLE>
<CAPTION>
                                                                      REDEMPTION
                  YEAR                                                   PRICE
                  --------------------------------------------------------------
<S>                                                                   <C>
                  2006                                                  104.375%
                  2007                                                  102.917%
                  2008                                                  101.458%
                  2009 and thereafter                                   100.000%
</TABLE>

6.  Sinking Fund

                  The Securities are not subject to any sinking fund.

7.  Notice of Redemption

                  Notice of redemption will be mailed by first-class mail at
least 30 days but not more than 60 days before the redemption date to each
Holder of Securities to be redeemed at his or her registered address. Securities
in denominations larger than $1,000 may be redeemed in part but only in whole
multiples of $1,000. If money sufficient to pay the redemption price of and
accrued and unpaid interest on all Securities (or portions thereof) to be
redeemed on the redemption date is deposited with the Paying Agent on or before
the redemption date and certain other conditions are satisfied, on and after
such date interest ceases to accrue on such Securities (or such portions
thereof) called for redemption.

8.  Repurchase of Securities at the Option of Holders upon Change of Control and
    Asset Dispositions

                  Upon a Change of Control, any Holder of Securities will have
the right, subject to certain conditions specified in the Indenture, to cause
the Company to repurchase all or any part of the Securities of such Holder at a
purchase price equal to 101% of the principal amount of the Securities to be
repurchased plus accrued and unpaid interest to the date of repurchase (subject
to the right of Holders of record on the relevant record date to

<PAGE>
                                                                               7

receive interest due on the relevant interest payment date that is on or prior
to the date of purchase) as provided in, and subject to the terms of, the
Indenture.

                  In accordance with Section 4.06 of the Indenture, the Company
will be required to offer to purchase Securities upon the occurrence of certain
events.

9.  Denominations; Transfer; Exchange

                  The Securities are in registered form without coupons in
denominations of $1,000 and whole multiples of $1,000. A Holder may transfer or
exchange Securities in accordance with the Indenture. Upon any transfer or
exchange, the Registrar and the Trustee may require a Holder, among other
things, to furnish appropriate endorsements or transfer documents and to pay any
taxes required by law or permitted by the Indenture. The Registrar need not
register the transfer of or exchange any Securities selected for redemption
(except, in the case of a Security to be redeemed in part, the portion of the
Security not to be redeemed) or to transfer or exchange any Securities for a
period of 15 days prior to a selection of Securities to be redeemed or 15 days
before an interest payment date.

10.  Persons Deemed Owners

                  Except as provided in paragraph 2 hereof, the registered
Holder of this Security may be treated as the owner of it for all purposes.

11.  Unclaimed Money

                  If money for the payment of principal or interest remains
unclaimed for two years, the Trustee and the Paying Agent shall pay the money
back to the Company at its written request unless an abandoned property law
designates another Person. After any such payment, Holders entitled to the money
must look to the Company for payment as general creditors and the Trustee and
the Paying Agent shall have no further liability with respect to such monies.

12.  Discharge and Defeasance

                  Subject to certain conditions, the Company at any time may
terminate some of or all its obligations under the Securities and the Indenture
if the Company deposits with the Trustee money or U.S. Government Obligations
for the payment of principal and interest on the Securities to redemption or
maturity, as the case may be.

13.  Amendment, Waiver

                  Subject to certain exceptions set forth in the Indenture, (i)
the Indenture or the Securities may be amended without prior notice to any
Holder but with the written consent of

<PAGE>
                                                                               8

the Holders of at least a majority in aggregate principal amount of the
outstanding Securities and (ii) any default may be waived with the written
consent of the Holders of at least a majority in principal amount of the
outstanding Securities. Subject to certain exceptions set forth in the
Indenture, without the consent of any Holder, the Company [, the Subsidiary
Guarantors] and the Trustee may amend the Indenture or the Securities (i) to
cure any ambiguity, omission, defect or inconsistency; (ii) to comply with
Article 5 of the Indenture; (iii) to provide for uncertificated Securities in
addition to or in place of certificated Securities; (iv) to add Subsidiary
Guarantees with respect to the Securities; (v) to secure the Securities; (vi) to
add additional covenants or to surrender rights and powers conferred on the
Company; (vii) to comply with the requirements of the SEC in order to effect or
maintain the qualification of the Indenture under the TIA; (viii) to make any
change that does not adversely affect the rights of any Holder; or (ix) to
provide for the issuance of the Exchange Securities or Additional Securities.

14.  Defaults and Remedies

                  If an Event of Default occurs (other than an Event of Default
relating to certain events of bankruptcy, insolvency or reorganization of the
Company) and is continuing, the Trustee or the Holders of at least 25% in
principal amount of the outstanding Securities may declare the principal of and
accrued but unpaid interest on all the Securities to be due and payable. If an
Event of Default relating to certain events of bankruptcy, insolvency or
reorganization of the Company occurs, the principal of and interest on all the
Securities shall become immediately due and payable without any declaration or
other act on the part of the Trustee or any Holders. Under certain
circumstances, the Holders of a majority in principal amount of the outstanding
Securities may rescind any such acceleration with respect to the Securities and
its consequences.

                  If an Event of Default occurs and is continuing, the Trustee
shall be under no obligation to exercise any of the rights or powers under the
Indenture at the request or direction of any of the Holders unless such Holders
have offered to the Trustee reasonable indemnity or security against any loss,
liability or expense and certain other conditions are complied with. Except to
enforce the right to receive payment of principal, premium (if any) or interest
when due, no Holder may pursue any remedy with respect to the Indenture or the
Securities unless (i) such Holder has previously given the Trustee notice that
an Event of Default is continuing, (ii) Holders of at least 25% in principal
amount of the outstanding Securities have requested the Trustee in writing to
pursue the remedy, (iii) such Holders have offered the Trustee reasonable
security or indemnity against any loss, liability or expense, (iv) the Trustee
has not complied with such request within 60 days after the receipt of the
request and the offer of security or indemnity and (v) the Holders of a majority
in principal amount of the outstanding Securities have not given the Trustee a
direction inconsistent with such request within such 60-day period. Subject to
certain restrictions, the Holders of a majority in principal amount of the
outstanding Securities are given the right to direct the time, method and place
of conducting any proceeding for any remedy available to the Trustee

<PAGE>
                                                                               9

or of exercising any trust or power conferred on the Trustee. The Trustee,
however, may refuse to follow any direction that conflicts with law or the
Indenture or that the Trustee determines is unduly prejudicial to the rights of
any other Holder or that would involve the Trustee in personal liability. Prior
to taking any action under the Indenture, the Trustee shall be entitled to
indemnification satisfactory to it in its sole discretion against all losses and
expenses caused by taking or not taking such action.

15.  Trustee Dealings with the Company

                  Subject to certain limitations imposed by the TIA, the Trustee
under the Indenture, in its individual or any other capacity, may become the
owner or pledgee of Securities and may otherwise deal with and collect
obligations owed to it by the Company or its Affiliates and may otherwise deal
with the Company or its Affiliates with the same rights it would have if it were
not Trustee.

16.  No Recourse Against Others

                  A director, officer, employee or stockholder, as such, of the
Company or any Subsidiary Guarantor shall not have any liability for any
obligations of the Company under the Securities or the Indenture or for any
claim based on, in respect of or by reason of such obligations or their
creation. By accepting a Security, each Holder waives and releases all such
liability. The waiver and release are part of the consideration for the issue of
the Securities.

17.  Authentication

                  This Security shall not be valid until an authorized signatory
of the Trustee (or an authenticating agent) manually signs the certificate of
authentication on the other side of this Security.

18.  Abbreviations

                  Customary abbreviations may be used in the name of a Holder or
an assignee, such as TEN COM (=tenants in common), TEN ENT (=tenants by the
entireties), JT TEN (=joint tenants with rights of survivorship and not as
tenants in common), CUST (=custodian), and U/G/M/A (=Uniform Gift to Minors
Act).

<PAGE>
                                                                              10

19.  Governing Law

                  THIS SECURITY SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK BUT WITH OUT GIVING EFFECT TO
APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF
THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

20.  CUSIP and ISIN Numbers

                  The Company has caused CUSIP and ISIN numbers to be printed on
the Securities and has directed the Trustee to use CUSIP and ISIN numbers in
notices of redemption as a convenience to Holders. No representation is made as
to the accuracy of such numbers either as printed on the Securities or as
contained in any notice of redemption and reliance may be placed only on the
other identification numbers placed thereon.

                  THE COMPANY WILL FURNISH TO ANY HOLDER OF SECURITIES UPON
WRITTEN REQUEST AND WITHOUT CHARGE TO THE HOLDER A COPY OF THE INDENTURE WHICH
HAS IN IT THE TEXT OF THIS SECURITY.

<PAGE>
                                                                              11

                                 ASSIGNMENT FORM

To assign this Security, fill in the form below:

I or we assign and transfer this Security to

       (Print or type assignee's name, address and zip code)

       (Insert assignee's soc. sec. or tax I.D. No.)

and irrevocably appoint                  agent to transfer this Security on the
books of the Company. The agent may substitute another to act for him.

____________________________________________________________

Date: ________________ Your Signature: _____________________

________________________________________________________________________________
Sign exactly as your name appears on the other side of this Security. Signature
must be guaranteed by a participant in a recognized signature guaranty medallion
program or other signature guarantor acceptable to the Trustee.

<PAGE>
                                                                              12

                       OPTION OF HOLDER TO ELECT PURCHASE

                  IF YOU WANT TO ELECT TO HAVE THIS SECURITY PURCHASED BY THE
COMPANY PURSUANT TO SECTION 4.06 (ASSET DISPOSITION) OR 4.08 (CHANGE OF CONTROL)
OF THE INDENTURE, CHECK THE BOX:

                   ASSET DISPOSITION [ ] CHANGE OF CONTROL { ]

                           IF YOU WANT TO ELECT TO HAVE ONLY PART OF THIS
SECURITY PURCHASED BY THE COMPANY PURSUANT TO SECTION 4.06 OR 4.08 OF THE
INDENTURE, STATE THE AMOUNT ($1,000 OR AN INTEGRAL MULTIPLE THEREOF):

$

DATE: __________________ YOUR SIGNATURE: __________________
                                            (SIGN EXACTLY AS YOUR NAME  APPEARS
                           ON THE OTHER SIDE OF THE SECURITY)

SIGNATURE GUARANTEE:_______________________________________
                           SIGNATURE MUST BE GUARANTEED BY A PARTICIPANT IN A
                           RECOGNIZED SIGNATURE GUARANTY MEDALLION PROGRAM OR
                           OTHER SIGNATURE GUARANTOR ACCEPTABLE TO THE TRUSTEE.

<PAGE>
                                                                              13

                      [TO BE ATTACHED TO GLOBAL SECURITIES]

              SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY

                  The initial principal amount of this Global Security is $[ ].
The following increases or decreases in this Global Security have been made:

<TABLE>
<CAPTION>
Date of        Amount of decrease in        Amount of increase in     Principal amount of this        Signature of authorized
Exchange       Principal Amount of this     Principal Amount of       this Global Security following  signatory of Trustee or
               Global Security              Global Security           such decrease or increase       Securities Custodian
<S>            <C>                          <C>                       <C>                             <C>

</TABLE>
<PAGE>

                                                                       EXHIBIT C

                        [FORM OF SUPPLEMENTAL INDENTURE]

                                    SUPPLEMENTAL INDENTURE (this "Supplemental
                           Indenture") dated as of           , among [GUARANTOR]
                           (the "New Guarantor"), a subsidiary of LAND O'LAKES,
                           INC. (or its successor), a Minnesota cooperative
                           corporation (the "Company"), [EXISTING GUARANTORS]
                           and U.S. BANK N.A., a national banking association,
                           as trustee under the indenture referred to below (the
                           "Trustee").

                             W I T N E S S E T H :

                  WHEREAS the Company and [OLD GUARANTORS] (the "Existing
Guarantors") has heretofore executed and delivered to the Trustee an Indenture
(the "Indenture") dated as of November __, 2001, providing for the issuance of
an aggregate principal amount of up to $[ ] of [ ]% Senior Notes due 2011 (the
"Securities");

                  WHEREAS Section 4.12 of the Indenture provides that under
certain circumstances the Company is required to cause the New Guarantor to
execute and deliver to the Trustee a supplemental indenture pursuant to which
the New Guarantor shall unconditionally guarantee all the Company's obligations
under the Securities pursuant to a Subsidiary Guarantee on the terms and
conditions set forth herein; and

                  WHEREAS pursuant to Section 9.01 of the Indenture, the
Trustee, the Company and the Existing Guarantors are authorized to execute and
deliver this Supplemental Indenture;

                  NOW THEREFORE, in consideration of the foregoing and for other
good and valuable consideration, the receipt of which is hereby acknowledged,
the New Guarantor, the Company, the Existing Guarantors and the Trustee mutually
covenant and agree for the equal and ratable benefit of the holders of the
Securities as follows:

                  1. Agreement to Guarantee. The New Guarantor hereby agrees,
jointly and severally with all the Existing Guarantors, to unconditionally
guarantee the Guaranteed Obligations on the terms and subject to the conditions
set forth in Article 10 of the Indenture and to be bound by all other applicable
provisions of the Indenture and the Securities.

                  2. Ratification of Indenture; Supplemental Indentures Part of
Indenture. Except as expressly amended hereby, the Indenture is in all respects
ratified and confirmed and all the terms, conditions and provisions thereof
shall remain in full force and effect. This Supplemental Indenture

<PAGE>
                                                                               2

shall form a part of the Indenture for all purposes, and every holder of
Securities heretofore or hereafter authenticated and delivered shall be bound
hereby.

                  3. Governing Law. THIS SUPPLEMENTAL INDENTURE SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK
BUT WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE
EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE
REQUIRED THEREBY.

                  4. Trustee Makes No Representation. The Trustee makes no
representation as to the validity or sufficiency of this Supplemental Indenture.

                  5. Counterparts. The parties may sign any number of copies of
this Supplemental Indenture. Each signed copy shall be an original, but all of
them together represent the same agreement.

                  6. Effect of Headings. The Section headings herein are for
convenience only and shall not effect the construction thereof.

                  IN WITNESS WHEREOF, the parties hereto have caused this
Supplemental Indenture to be duly executed as of the date first above written.

                                [NEW GUARANTOR],

                                 by
                                    ___________________________________
                                    Name:
                                    Title:

                                 LAND O'LAKES, INC.,

                                  by
                                    ___________________________________
                                    Name:
                                    Title:

                                 [EXISTING GUARANTORS],

                                  by
                                      ______________________________________
                                      Name:
                                      Title:

                                 U.S. BANK N.A., as Trustee,

                                  by
                                      ______________________________________
                                      Name:
                                      Title:

<PAGE>
                                                                       EXHIBIT D

                FORM OF CERTIFICATE TO BE DELIVERED IN CONNECTION
                     WITH TRANSFERS PURSUANT TO REGULATION S

                                                                          [Date]

Land O'Lakes, Inc.
4001 Lexington Avenue North
Arden Hills, Minnesota 55126

                  Re:      Land O'Lakes, Inc.
                           8 3/4% Senior Notes Due 2011 (the "Securities")

Ladies and Gentlemen:

                  In connection with our proposed sale of $________ aggregate
principal amount of the Securities, we confirm that such sale has been effected
pursuant to and in accordance with Regulation S under the United States
Securities Act of 1933, as amended (the "Securities Act"), and, accordingly, we
represent that:

                  (a) the offer of the Securities was not made to a person in
         the United States;

                  (b) either (1) at the time the buy order was originated, the
         transferee was outside the United States or we and any person acting on
         our behalf reasonably believed that the transferee was outside the
         United States, (2) the transaction was executed in, on or through the
         facilities of a designated off-shore securities market and neither we
         nor any person acting on our behalf knows that the transaction has been
         pre-arranged with a buyer in the United States;

                  (c) no directed selling efforts have been made in the United
         States in contravention of the requirements of Rule 903(b) or Rule 904
         of Regulation S, as applicable; and

                  (d) the transaction is not part of a plan or scheme to evade
         the registration requirements of the Securities Act.

In addition, if the sale is made during a restricted period and the provisions
of Rule 903(b)(3) or Rule 904(b)(1) of Regulation S are applicable thereto, we
confirm that such sale has been made in accordance with the applicable
provisions of Rule 903(b)(3) or Rule 904(b)(1), as the case may be.
You and the Company are entitled to rely upon this letter and are irrevocably
authorized to produce this letter or a copy hereof to any interested party in
any administrative or legal proceedings or official inquiry with respect to the
matters covered hereby. Terms used in this certificate have the meanings set
forth in Regulation S.

                                             Very truly yours,
                                             [Name of Transferor]
                                             By:_______________________________
                                                      Authorized Signature
<PAGE>
                                                                       EXHIBIT E

                                     Form of
                       Transferee Letter of Representation

Land O'Lakes, Inc.
4001 Lexington Avenue North
Arden Hills, Minnesota 55126

Ladies and Gentlemen:

         This certificate is delivered to request a transfer of $[ ] principal
amount of the [  ]% Senior Notes due 2011 (the "Securities") of Land O'Lakes,
Inc. (the "Company").

         Upon transfer, the Securities would be registered in the name of the
new beneficial owner as follows:

Name:________________________

Address:_____________________

Taxpayer ID Number:__________

         The undersigned represents and warrants to you that:

         1. We are an institutional "accredited investor" (as defined in Rule
501(a)(1), (2), (3) or (7) under the Securities Act of 1933, as amended (the
"Securities Act")), purchasing for our own account or for the account of such an
institutional "accredited investor" at least $250,000 principal amount of the
Securities, and we are acquiring the Securities not with a view to, or for offer
or sale in connection with, any distribution in violation of the Securities Act.
We have such knowledge and experience in financial and business matters as to be
capable of evaluating the merits and risks of our investment in the Securities,
and we invest in or purchase securities similar to the Securities in the normal
course of our business. We, and any accounts for which we are acting, are each
able to bear the economic risk of our or its investment.

         2. We understand that the Securities have not been registered under the
Securities Act and, unless so registered, may not be sold except as permitted in
the following sentence. We agree on our own behalf and on behalf of any investor
account for which we are purchasing Securities to offer, sell or otherwise
transfer such Securities prior to the date that is two years after the later of
the date of original issue and the last date on which the Company or any
affiliate of the Company was the owner of such Securities (or any

<PAGE>
                                                                               2

predecessor thereto) (the "Resale Restriction Termination Date") only (a) to the
Company, (b) pursuant to a registration statement that has been declared
effective under the Securities Act, (c) in a transaction complying with the
requirements of Rule 144A under the Securities Act ("Rule 144A"), to a person we
reasonably believe is a qualified institutional buyer under Rule 144A (a "QIB")
that is purchasing for its own account or for the account of a QIB and to whom
notice is given that the transfer is being made in reliance on Rule 144A, (d)
pursuant to offers and sales that occur outside the United States within the
meaning of Regulation S under the Securities Act, (e) to an institutional
"accredited investor" within the meaning of Rule 501(a)(1), (2), (3) or (7)
under the Securities Act that is purchasing for its own account or for the
account of such an institutional "accredited investor," in each case in a
minimum principal amount of Securities of $250,000, or (f) pursuant to any other
available exemption from the registration requirements of the Securities Act,
subject in each of the foregoing cases to any requirement of law that the
disposition of our property or the property of such investor account or accounts
be at all times within our or their control and in compliance with any
applicable state securities laws. The foregoing restrictions on resale will not
apply subsequent to the Resale Restriction Termination Date. If any resale or
other transfer of the Securities is proposed to be made pursuant to clause (e)
above prior to the Resale Restriction Termination Date, the transferor shall
deliver a letter from the transferee substantially in the form of this letter to
the Company and the Trustee, which shall provide, among other things, that the
transferee is an institutional "accredited investor" within the meaning of Rule
501(a)(1), (2), (3) or (7) under the Securities Act and that it is acquiring
such Securities for investment purposes and not for distribution in violation of
the Securities Act. Each purchaser acknowledges that the Company and the Trustee
reserve the right prior to the offer, sale or other transfer prior to the Resale
Restriction Termination Date of the Securities pursuant to clause (d), (e) or
(f) above to require the delivery of an opinion of counsel, certifications or
other information satisfactory to the Company and the Trustee.

                                                 TRANSFEREE:___________________,

                                                  by:__________________________

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00035-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00035-of-00352.parquet"}]]