Document:

<PAGE>

                                                             Exhibit 10.10.1.(e)

                         AMENDED AND RESTATED SECURITY
                                   AGREEMENT

                                BY AND BETWEEN

                  SOUTHERN STATES COOPERATIVE, INCORPORATED

                                   as Debtor

                                      AND

                         AGWAY, INC. as Secured Party

                        Dated as of September 18, 2001
<PAGE>

                    AMENDED AND RESTATED SECURITY AGREEMENT

         THIS AMENDED AND RESTATED SECURITY AGREEMENT ("Security Agreement") is
made as of September 18, 2001, by and between SOUTHERN STATES COOPERATIVE,
INCORPORATED ("Debtor") whose address is 6606 West Broad Street, Richmond,
Virginia 23230, and Agway, Inc. whose address is 333 Butternut Drive, DeWitt,
New York 13214 ("Secured Party").

                                R E C I T A L S

         A.  Debtor has executed and delivered to Secured Party, a Promissory
Note, dated July 31, 2000, in the original principal amount of $13,300,000
(together with any amendment thereto and note issued in exchange or substitution
therefor, the "Agway Note") pursuant to an Asset Purchase Agreement, dated as of
June 20, 2000, in payment by Debtor of a portion of the purchase price for
certain assets purchased from Secured Party.

         B.  CoBank, ACB, as Agent ("Agent"), Lenders (as defined therein) and
Debtor are parties to that certain Amended, Restated and Consolidated Loan and
Security Agreement, dated as of September 18, 2001 ("Loan Agreement"). Agent,
Lenders, Collateral Agent (as defined below) and Secured Party have entered into
that certain Intercreditor and Agency Agreement, dated as of even date herewith
("Intercreditor Agreement");

         C.  The provisions of the Intercreditor Agreement provide that, CoBank,
ACB, shall act as the collateral agent for the benefit of Agent, Lenders and
Secured Party (together with any successor collateral agent, the "Collateral
Agent") with respect to the Collateral (as defined herein and as defined in the
Loan Agreement).

         D.  This Security Agreement along with the applicable provisions in the
Loan Agreement and the Intercreditor and Agency Agreement collectively, amends
and restates that certain Security Agreement dated January 9, 2001, by and
between Debtor, as debtor and CoBank, ACB, in its capacity as collateral agent,
as secured party ("Existing Security Agreement"). All liens and security
interests previously granted to CoBank, ACB, as collateral agent, for the
benefit of the Lenders (as defined in the Loan Agreement) and Agway, are
acknowledged and reconfirmed, remain in full force and effect as amended,
consolidated and restated hereby, and are not intended to be released, replaced
or impaired.

                              A G R E E M E N T S

         In consideration of the mutual covenants and agreements herein
contained and other good and valuable consideration, the receipt and adequacy of
which are hereby acknowledged, Debtor and Secured Party agree as follows:

         1.  Definitions. Unless otherwise defined herein, each term used herein
and defined in the Uniform Commercial Code as enacted from time to time in the
State of New York ("UCC") shall have the meaning given to such term in the UCC.
As used in this Security Agreement, the following terms shall have the meanings
set forth below:

                                       1
<PAGE>

                  1.1   Business Day: any day other than a Saturday, a Sunday or
a day on which commercial banks in Colorado, New York or Virginia are required
or authorized to be closed.

                  1.2   Collateral: all of Debtor's present and future assets
and property whether now owned or hereafter acquired or arising, including
without limitation,

                        (a)   Receivables;

                        (b)   General Intangibles, which shall include, without
limitation, all Payment Intangibles, choses in action, causes of action,
corporate or other business records, inventions, designs, patents, patent
applications, equipment formulations, manufacturing procedures, quality control
procedures, trademarks, service marks, trade secrets, goodwill, copyrights,
design rights, registrations, licenses, franchises, customer lists, tax refunds,
tax refund claims, computer programs, intellectual property, all claims under
guaranties, security interests or other security held by or granted to Debtor to
secure payment of any of the Receivables by a customer, all rights of
indemnification and all other intangible property of every kind and nature
(other than Receivables);

                        (c)   Inventory;

                        (d)   Equipment;

                        (e)   real property listed on Schedule 1.2 attached
hereto;

                        (f)   all issued and outstanding shares of stock and
membership interests in Virginia Seed Service, Inc., a Virginia corporation,
Southern States Underwriters, Incorporated, a Virginia corporation, Southern
States Holdings, Inc., a Virginia corporation, Wetsel, Inc., a Virginia
corporation, SSC Insurance Agency, Incorporated, a Virginia corporation, and
Agriland Exchange, Inc., a Michigan corporation, Southern States Receivables
Corp., a Virginia corporation, Southern States Insurance Exchange, a Virginia
insurance reciprocal and Southern States Ventures, L.C., a Virginia limited
liability company, Cooperative Milling, Inc. a Pennsylvania corporation, Equine
Specialty Feed Company, LLC, a Virginia company, Southerngate Terminal, LLC, a
North Carolina limited liability company, Allied Seed, LLC, a Wyoming limited
liability company, CF Industries, Inc., a Delaware corporation, Cooperative
Seeds, Inc., an Indiana corporation, FFR Cooperative, Inc., a Wisconsin
corporation, Premium Beef Systems, LLC, a Virginia limited liability company,
Pro-Pet, LLC, a Delaware limited liability company, Silver Lake Growers Gin,
LLC, a North Carolina limited liability company, Universal Cooperative Inc., a
Minnesota corporation and any future subsidiary;

                        (g)   leasehold interests listed on Schedule 1.2
attached hereto;

                        (h)   right, title and interest in and to (i) its
respective goods and other property including, but not limited to, all
merchandise returned or rejected by customers, relating to or securing any of
the Receivables; (ii) all of Debtor's rights as a consignor, a consignee, an
unpaid vendor, mechanic, artisan, or other lienor, including stoppage in
transit, setoff, detinue, replevin, reclamation and repurchase; (iii) all
additional amounts due to Debtor from any customer relating to the Receivables;
(iv) other property, including warranty claims, relating to any goods securing
the Loan Agreement; (v) all of Debtor's contract rights, Letter-of-Credit
Rights, rights of payment which have been earned under a contract right,
instruments, Documents, chattel paper (including Electronic Chattel Paper),
warehouse receipts, Deposit Accounts, money, securities, patronage dividends,
patronage refunds, stock retirement

                                       2
<PAGE>

payments, CoBank Class-E stock (but subject to CoBank's priority statutory lien
on such stock), retirement payment thereon and proceeds thereof, and Investment
Property; (vi) if and when obtained by Debtor, all supporting obligations
including real and personal property of third parties in which Debtor has been
granted a lien or security interest as security for the payment or enforcement
of Receivables; and (vii) any Commercial Tort Claims, other goods, personal
property or real property now owned or hereafter acquired in which Debtor has
granted a security interest or may in the future grant a security interest to
Collateral Agent, or in any amendment or supplement hereto or thereto, or under
any other agreement between Collateral Agent and Debtor;

                        (i)   ledger sheets, ledger cards, files,
correspondence, records, books of account, business papers, computers, computer
software (owned by Debtor or in which it has an interest), computer programs,
tapes, disks and documents relating to (a), (b), (c), (d), (e), (f), (g), or (h)
of this definition;

                        (j)   Farm Products, including, without limitation, all
poultry, livestock, and fish and their young, together with all products and
replacements for such poultry, fish, and livestock, all crops, annual or
perennial, and all products of such crops, and all feed, seed, fertilizer,
chemicals, medicines and other supplies used or produced in Debtor's farming,
agricultural or aquacultural operations; and

                        (k)   proceeds and products of (a), (b), (c), (d), (e),
(f), (g), (h), (i) and (j) in whatever form, including, but not limited to:
cash, deposit accounts (whether or not comprised solely of proceeds),
certificates of deposit, insurance proceeds (including, without limitation,
hazard, flood and credit insurance), negotiable instruments and other
instruments for the payment of money, chattel paper, security agreements,
documents, eminent domain proceeds, condemnation proceeds and tort claim
proceeds.

                  1.3   Receivables: all Accounts, notes receivable, contract
rights, Chattel Paper, Payment Intangibles, drafts and acceptances, Documents
(including documents of title), Instruments (including those evidencing
indebtedness owed to Debtor by its affiliates), letters of credit, and all other
forms of obligations owing to Debtor including, without limitation obligations
arising out of or in connection with the sale or lease of Inventory or the
rendition of services, all guarantees and other supporting obligations and
security thereof and therefor, all whether now existing or hereafter created or
arising, including, without limitation, Receivables acquired from Statesman
Financial Corporation and/or Michigan Livestock Credit Corporation.

                  1.4   Obligations: all of Debtor's indebtedness, obligations
and liabilities to Secured Party, of every kind, nature and description, direct
or indirect, secured or unsecured, joint several, joint and several, absolute or
contingent, due or to become due, arising under the Agway Note.

                  1.5   Wachovia Securitization: the sale of Wholesale
Receivables by Debtor pursuant to the Purchase and Sale Agreement dated as of
November 22, 2000 between the sellers named therein and Southern States
Receivables Corp. and the Receivables Purchase Agreement dated as of November
22, 2000 among Southern States Receivable Corp. as seller and Statesman
Financial Corporation as servicer and the Debtor as a seller party, Blue Ridge
Asset Funding Corporation as purchaser and Wachovia Bank, N.A. as administrative
agent, each as amended from time to time.

                  1.6   Wholesale Receivables: any Receivable owing from a
person, whether

                                      3
<PAGE>

constituting an account, chattel paper, instrument or general intangible,
including the right to payment of any interest or finance charges and other
amounts with respect thereto, and arising from the sale of goods or services by
the Feed, Fertilizer, Petroleum and Farm and Home business units of the Southern
States Wholesale Division but excluding accounts, chattel paper, instruments or
general intangibles arising from the sale of goods or services within the
Consumer Wholesale Dealer Distribution business of Agway (as defined in the
Asset Purchase Agreement between Debtor and Agway dated as of June 20, 2000).

         2.   Security Interest.

              2.1   Grant of Security Interest. Debtor, for consideration and to
secure the Obligations, hereby reaffirms its prior grant of a security interest
in certain of the Collateral described herein, and assigns, pledges and grants
to Secured Party a continuing lien and continuing security interest (subject to
no other liens or encumbrances other than Permitted Encumbrances, as hereinafter
defined) in all of Debtor's right, title and interest in the Collateral.

              2.2   Wholesale Receivables. Secured Party agrees that Wholesale
Receivables sold by Debtor to Southern States Receivables Corp. pursuant to the
Wachovia Securitization shall be sold free and clear of Secured Party's lien on
such Wholesale Receivables, provided that Secured Party's lien shall immediately
attach to such Wholesale Receivables upon any repurchase of any such Wholesale
Receivables by Debtor.

         3.   Representations and Warranties. Debtor represents and warrants to
Secured Party as follows:

              3.1   Title to Collateral. Except for liens and encumbrances
permitted under Section 7.2 of the Loan Agreement which is incorporated herein
by reference ("Permitted Encumbrances"), Debtor has good title to all Collateral
free of all adverse claims, interests, liens, restrictions or encumbrances.
Debtor has full power and authority to sell, transfer, pledge, and grant to
Secured Party a security interest in the Collateral, subject to no liens or
encumbrances other than liens and encumbrances created hereby and Permitted
Encumbrances.

              3.2   Chief Executive Office; Collateral; Books and Records.
Debtor's place of business and, if Debtor has more than one place of business,
the chief executive office of Debtor (including the county in which such office
is located) and the locations of Debtor's books and records relating to the
Collateral are listed on Schedule 3.2 attached hereto.
                         ------------

         4.   Covenants of Debtor. Debtor covenants to Secured Party that:

              4.1   Title to Collateral. Except for Permitted Encumbrances,
Debtor shall not create or permit the existence of any adverse claims,
interests, liens, or other encumbrances against any of the Collateral. Except
for Permitted Encumbrances, Debtor shall, (a) provide prompt written notice to
Secured Party of any future adverse claims, interests, liens, or encumbrances
against any Collateral, (b) promptly obtain a release or discharge of any such
claims, interests, liens, or encumbrances, and (c) diligently defend Debtor's
and Secured Party's interests in the Collateral.

              4.2   Location of Debtor and Collateral; Change in Information.
Debtor will not change its chief executive office or the location of its books
and records relating to the Collateral

                                       4
<PAGE>

(except to another location described on Schedule 3.2) without giving at least
                                         ------------
thirty (30) days prior written notice to Secured Party and furnishing Secured
Party with such documents as Secured Party may request pursuant to Section 4.7
hereof prior to taking any such action.

                  4.3   Books and Records . Debtor shall keep proper books and
records in which complete and correct entries will be made of all of Debtor's
transactions relating to the Collateral.

                  4.4   Transfers, Dispositions and Encumbrances. Except as
otherwise permitted pursuant to Section 4.3 of the Loan Agreement which is
incorporated herein by reference, (a) Debtor will not offer for sale or sell or
transfer or otherwise dispose of any of the Collateral or any interest therein,
and (b) Debtor will not create, incur, or permit to exist any mortgage, lien,
charge, encumbrance, or security interest whatsoever with respect to the
Collateral other than the liens and encumbrances created hereby and by the Loan
Agreement and Permitted Encumbrances.

                  4.5   Maintenance and Insurance; Taxes.

                        (a)   Debtor will keep the Collateral in good working
order and condition and maintain liability insurance and insurance on such
Collateral with financially sound and reputable insurance companies or
associations in such amounts and covering such risks as are usually carried by
companies engaged in the same or a similar business and similarly situated as
further set forth in Section 4.11 of the Loan Agreement which is incorporated
herein by reference. All liability policies shall name the Collateral Agent as
additional insured as its interests may appear. All such insurance policies
shall be endorsed with a mortgagee's or lender loss payable clause, as
appropriate, in favor of the Collateral Agent. All such insurance policies shall
contain a provision requiring at least thirty (30) days' notice to the
Collateral Agent prior to any cancellation. Debtor shall give the Collateral
Agent satisfactory written evidence of premium payment and renewal or
substitution of all such policies. Debtor agrees to pay all premiums on such
insurance as they become due, and will not permit any condition to exist on or
with respect to its assets which would wholly or partially invalidate any
insurance thereon.

                        (b)   Debtor will pay promptly all taxes and assessments
on the Collateral when due and payable except to the extent such taxes and
assessments are being contested in good faith by appropriate proceedings and for
which appropriate reserves have been established; provided that, the aggregate
amount of such taxes, assessments and other charges being so contested shall not
exceed $1,000,000. Collateral Agent at its option, may discharge (i) any taxes
or other governmental charges that Debtor is required to pay but fails to pay,
unless such taxes or governmental charges are being contested in good faith by
appropriate proceedings and adequate reserves have been established therefor in
accordance with generally accepted accounting principles (GAAP) in the United
States and the aggregate amount of such taxes or other governmental charges does
not exceed $1,000,000 and (ii) any lien, security interest, or other encumbrance
to which any Collateral is at any time subject that does not constitute a
Permitted Encumbrance. Debtor agrees to reimburse Collateral Agent on demand for
any payment or expenses incurred by any of them pursuant to the foregoing
authorization and any unreimbursed amounts shall constitute amounts owing under
the Obligations for all purposes under this Security Agreement.

                  4.6   Change in Structure or Name. Debtor shall not change its
name, identity or corporate structure (including without limitation its state of
incorporation).

                  4.7   Further Assurances. Debtor shall (a) upon demand,
execute, assign and

                                       5
<PAGE>

endorse all applications, acceptances, chattel paper, documents, instruments and
other evidences of payment or writings constituting or relating to any of the
Collateral and (b) execute from time to time financing statements and any other
documents in form and content satisfactory to Secured Party and perform such
other acts as Secured Party may reasonably request to perfect, maintain and
continue its valid first priority (subject only to Permitted Encumbrances)
security interest in the Collateral or to effectuate the rights granted to
Secured Party herein, and Debtor will pay all costs associated with the filing
or recordation of any such documents.

         5.   Events of Default. Debtor shall be in default under this Security
Agreement upon (i) the occurrence of any event that would permit the
acceleration of the indebtedness under the Agway Note (ii) Debtor's failure to
comply with, perform, or observe any term, provision, covenant or condition
contained herein, or (iii) any representation or warranty made or deemed made by
Debtor herein shall prove to have been false or misleading in any material
respect on the date when made or deemed to have been made, (each such
occurrence, an "Event of Default").

         6.   Rights and Remedies of Secured Party.

              6.1   Insurance.

                    (a)   Debtor will direct all insurers under policies of
property and casualty insurance on the Collateral to pay all proceeds payable
thereunder directly to Collateral Agent; provided that, Collateral Agent may
remit certain insurance proceeds to Debtor as set forth in Section 4.11 of the
Loan Agreement which is incorporated herein by reference.

                    (b)   If  Debtor  fails to obtain  and maintain any of the
policies of insurance required to be maintained hereunder or to pay any premium
in whole or in part, Secured Party may, without waiving or releasing any
obligation or Event of Default, at Debtor's expense, but without any obligation
to do so, procure such policies or pay such premiums. All sums so disbursed by
Secured Party, including attorneys' fees, court costs, expenses and other
charges related thereto, shall be payable by Debtor to Secured Party on demand
and shall be additional Obligations hereunder, secured by the Collateral.

              6.2   General.  Upon the occurrence of an Event of Default and at
any time thereafter, pursuant to the Agway Note, the Obligations may be declared
immediately due and payable.

              6.3   Right of Secured Party to Take Possession and Dispose of
Collateral. Upon the occurrence of an Event of Default and subject to the terms
of the Intercreditor Agreement, Secured Party shall have the right to:

                    (a)   take possession of the Collateral and enter upon the
premises on which the Collateral or any part thereof may be situated and remove
the Collateral from those premises and thereafter to hold, store, and/or use,
operate, manage, and control the Collateral and do all things Secured Party
shall deem necessary or appropriate in the preparation, marketing and
disposition thereof, including but not limited to caring for, protecting,
feeding, exercising, harvesting, storing, packaging, processing, transporting
and otherwise placing in marketable condition any of the Collateral;

                    (b)   require Debtor to deliver the Collateral to Secured
Party at a place to

                                       6
<PAGE>

be designated by Secured Party which is reasonably convenient to both parties;

                         (c)   sell, lease or otherwise dispose of any or all of
the Collateral in its then present condition or following any commercially
reasonable preparation or processing thereof, whether by public or private sale,
for cash, on credit or otherwise, with or without representations or warranties,
and upon such terms as may be acceptable to Secured Party, and Secured Party may
purchase the Collateral at any public sale or at any private sale where the
Collateral being sold is of a type customarily sold on a recognized market or of
a type which is the subject of widely distributed standard price quotations; and

                         (d)   exercise any and all rights provided by law,
including the UCC.

                  6.4    Notice of Disposition of Collateral. Except where the
Collateral is perishable or threatens to decline speedily in value or is of a
type customarily sold on a recognized market and subject to the terms of the
Intercreditor Agreement, Secured Party will give notice to Debtor of any public
sale or of the time after which any private sale or other intended disposition
is to be made by Secured Party with respect to any Collateral which is subject
to Article 9 of the UCC at the address for Debtor specified in Section 7.11, or
such other address as may from time to time be shown on Secured Party's records,
at least ten (10) days prior to such action. Any such notice shall be deemed to
meet any requirement hereunder or under an applicable law (including without
limitation the UCC) that reasonable notification be given of the time and place
of such sale or other disposition or the time after which such sale or other
disposition may occur. Debtor consents and agrees that, in addition to the other
rights and remedies provided to Secured Party in this Article 6, Secured Party
may, in lieu of, or prior to, selling the Collateral at public or private sale,
retain any payments received on account of any of the Collateral and apply the
same to amounts owing under the Obligations until such time as the Obligations
have been paid in full.

                  6.5    Right of Secured Party to Use and Operate Collateral.
Upon the occurrence of an Event of Default and subject to the terms of the
Intercreditor Agreement:

                         (a)   Upon exercise of Secured Party's right to take
possession of the Collateral, Secured Party may, from time to time, make all
replacements, alterations, additions, and improvements to and of the Collateral
that Secured Party deems proper. Debtor agrees to reimburse Secured Party on
demand for any reasonable expenses incurred by Secured Party pursuant to the
foregoing authorization and any unreimbursed amounts shall constitute amounts
owing under the Secured Obligations for all purposes under this Security
Agreement.

                         (b)   Secured Party shall have the right to operate,
manage and control the Collateral and to carry on Debtor's business and to
exercise all rights and powers of Debtor in respect to the Collateral as Secured
Party shall deem best, including the right to enter into any agreements with
respect to the Collateral or any part thereof, that Secured Party sees fit; and
Secured Party shall be entitled to collect and receive all rents, issues,
profits, fees, revenues, and other income of the Collateral and every part
thereof. Such rents, issues, profits, fees, revenues, and other income shall be
applied to pay the expenses of holding and operating the Collateral and of
conducting the business thereof and of all maintenance, replacements,
processing, alterations, additions, and improvements, and to make all payments
which Secured Party may be required or may elect to make, if any, for taxes,
assessments, insurance, and other charges upon the Collateral or any part
thereof, and all other payments which Secured Party may be required or
authorized to make under any provision of this Security Agreement

                                       7
<PAGE>

(including reasonable attorneys' fees and expenses).

                         (c)   Without limiting the generality of the foregoing,
Secured Party shall have the right to apply for and have a receiver appointed
ex-parte by a court of competent jurisdiction in any action taken by Secured
Party to enforce its rights and remedies hereunder in order to manage, protect,
and preserve the Collateral and continue the operation of the business of Debtor
and to collect all revenues and profits thereof and apply them to the payment of
all expenses and other charges of such receivership, including the compensation
of the receiver, and to the payment of the Obligations as described above until
a sale or other disposition of the Collateral shall be finally made and
consummated.

                  6.6    Collection of Accounts. Upon the occurrence of an Event
of Default and subject to the terms of the Intercreditor Agreement:

                         (a)   Debtor shall provide promptly to Secured Party
such reports, certificates, lists of account debtors (showing names, addresses
and amounts owing), invoices applicable to each account, and other data
concerning its accounts, contracts, collections, and other matters as Secured
Party may from time to time request.

                         (b)   Secured Party shall have the right at any time
and from time to time, without notice, to (i) notify account debtors that their
accounts have been assigned to Secured Party; (ii) advise account debtors of
Secured Party's security interest and/or instruct account debtors to make
payments directly to Secured Party; (iii) charge to any account (other than any
escrow account) of Debtor with Secured Party, or controlled by it, any item of
payment received by Secured Party and credited to Debtor which is dishonored by
the drawee or maker thereof; (iv) endorse all items of payment made payable to
Debtor which may come into the possession of Secured Party; (v) collect all
accounts in the name of Secured Party or in Debtor's name, and take control of
any cash or non-cash proceeds of accounts and of any returned or repossessed
goods; (vi) compromise, extend or renew the amount owing on any account or deal
with any account as Secured Party may deem advisable; and (vii) make exchanges,
substitutions or surrenders of collateral for any account.

                         (c)   Once any or all account debtors have been
notified, whether by Debtor or Secured Party, to make payment directly to
Secured Party, all amounts and proceeds received by Debtor in respect of such
accounts shall be received in trust for the benefit of Secured Party, shall be
segregated from other funds of Debtor, and shall be immediately paid over to
Secured Party in the same form as so received. Such actions and the application
of any such amounts to the Obligations shall not be deemed to constitute
retention in satisfaction of the Obligations under Section 9-620 of the UCC.

         7.       General Provisions.

                  7.1    Collateral Agent. Debtor and Secured Party each
acknowledge that the rights and responsibilities of Secured Party under this
Security Agreement with respect to any action taken by Secured Party or the
exercise or non-exercise by Secured Party of any request, judgment or other
right or remedy provided for herein or resulting or arising out of this Security
Agreement shall, as between the Secured Party, Agent, Collateral Agent and
Lenders (as defined in the Loan Agreement), be governed by the Intercreditor
Agreement. However, as between Secured Party and Debtor, Collateral Agent shall
be conclusively presumed to be acting as agent for the Agent, Lenders and
Secured Party with full and valid authority to so act or refrain from acting,
and Debtor shall not be under

                                      8
<PAGE>

any obligation or entitlement to make any inquiry respecting such authority.

                  7.2   Amendment, Modification, and Waiver. Without the prior
written consent of Secured Party, no amendment, modification, or waiver of, or
consent to any departure by Debtor from, any provision hereunder shall be
effective. Any such amendment, modification, waiver, or consent shall be
effective only in the specific instance and for the specific purpose for which
given. The taking of the security interest created by this Security Agreement
shall not be deemed to waive or impair any other security interest that Secured
Party may have or hereafter acquire for the payment of the Obligations, nor
shall the taking of any such additional security interest waive or impair this
Security Agreement; but Secured Party may resort to any security it may have in
the order it may deem proper, and notwithstanding any collateral security,
Secured Party shall retain its rights of setoff against Debtor. No delay or
omission on the part of Secured Party in exercising any right hereunder shall
operate as a waiver of such right or of any other right hereunder.

                  7.3   Costs and Attorneys' Fees. Debtor will, within three (3)
days of demand, pay to Secured Party the amount of any and all expenses,
including the reasonable attorneys' fees and expenses of counsel for Secured
Party, and of any experts and agents, which Secured Party may incur in
connection with (a) the administration of this Security Agreement upon the
occurrence of an Event of Default; (b) the collection, retaking, storage,
custody, preservation, use or operation of, preparing for sale, selling or other
disposition and delivery, collection from, or other foreclosure or realization
upon, any of the Collateral; (c) the exercise or enforcement of any of the
rights of Secured Party hereunder; or (d) the failure by Debtor to perform or
observe any of the provisions hereof (collectively, the "Enforcement Costs").

                  7.4   Revival of Obligations. To the extent Debtor or any
third party makes a payment or payments to Secured Party, or Secured Party
enforces its security interest or exercises any right of setoff, and such
payment or payments or the proceeds thereof are subsequently invalidated,
declared to be fraudulent or preferential, set aside, and/or required to be
repaid to a trustee, receiver, or any other party under any bankruptcy,
insolvency or other law or in equity, then, to the extent of such recovery, the
Obligations or any part thereof originally intended to be satisfied shall be
revived and continued in full force and effect as if such payment or payments
had not been made, or such enforcement or setoff had not occurred.

                  7.5   Performance by Secured Party. In the event Debtor shall
at any time fail to pay or perform within any applicable grace period any of its
duties hereunder, Secured Party may, at its option and without notice to or
demand upon Debtor, without obligation and without waiving or diminishing any of
its other rights or remedies hereunder, fully perform or discharge any of such
duties. All costs and expenses incurred by Secured Party in connection
therewith, together with interest thereon at the highest rate of interest set
forth in the Agway Note, shall become part of the Obligations and be paid by
Debtor upon demand. Under no circumstances will the rate of interest chargeable
be in excess of the maximum amount permitted by law. If any such excess interest
is charged and paid in error, then the excess amount will be promptly refunded.

                  7.6   Power of Attorney. Secured Party is hereby appointed
Debtor's attorney-in-fact, with full power of substitution, at Secured Party's
option and Debtor's expense, after the occurrence and during the continuance of
an Event of Default (except for the actions described in clause (a) below which
may be taken by the Secured Party without regard to whether an Event of Default
has occurred) to take any action and to execute any instruments that Secured
Party may deem necessary or

                                       9
<PAGE>

advisable to accomplish the purpose of this Security Agreement, including,
without limitation:

                         (a)    to sign the name of Debtor on any financing
statement, continuation statement, notice or other similar document that, in the
Secured Party's opinion, should be made or filed in order to perfect or continue
perfected the security interest granted in the Collateral;

                         (b)    to obtain and adjust the insurance required to
be maintained hereunder, to make, settle and adjust claims under such insurance
and to endorse Debtor's name on any check, draft, instrument or other item of
payment for the proceeds of such insurance;

                         (c)    to ask, demand, collect, sue for, recover,
compromise, receive and give receipts for moneys due and to become due under or
in respect of any of the Collateral;

                         (d)    to receive, endorse, and collect any drafts or
other instruments, documents and chattel paper, in connection with (b) or (c)
above; and

                         (e)    to file any claims or take any action or
institute any proceedings which Secured Party may deem necessary or desirable
for the collection of any of the Collateral or otherwise to enforce the rights
of Secured Party with respect to any of the Collateral.

         The power vested in Secured Party as Debtor's attorney-in-fact is, and
shall be deemed to be, coupled with an interest and cannot be revoked. Secured
Party agrees to endeavor to notify Debtor before it exercises its rights under
this Section; provided that Secured Party's failure to provide such notice shall
not impair its rights hereunder nor create in Debtor any claim of any kind
against Secured Party.

                  7.7    Protection of Collateral. Secured Party shall not be
required to take any steps necessary to preserve any rights in the Collateral.
Secured Party shall further be under no duty to exercise or to withhold the
exercise of any of the rights, powers, privileges and options expressly or
implicitly granted to Secured Party in this Security Agreement, and Secured
Party shall not be responsible for any failure to exercise such rights, nor for
its delay in so doing. Secured Party shall be deemed to have exercised
reasonable care as custodian of the Collateral if it takes such action to
protect and preserve the Collateral as Debtor shall request, but failure to
honor any such request shall not be deemed to be a failure by Secured Party to
exercise reasonable care. The care which Secured Party gives to the safekeeping
of property of its own of like kind shall constitute reasonable care of the
Collateral when in Secured Party's possession.

                  7.8    Additional Rights of Secured Party. Secured Party, in
its discretion, and without notice to Debtor, may take any one or more of the
following actions without liability except to account for property actually
received by it: (a) upon the occurrence of an Event of Default, renew, extend,
or otherwise change the terms and conditions of any of the Accounts; (b) take
from any third party any Collateral or release any such Collateral as security
for the Secured Obligations; and (c) to add or release any guarantor, endorser
or surety on the Secured Obligations or any of them or add or release any other
party responsible for the payment of the Secured Obligations or any of them.

                  7.9    Successors and Assigns. This Security Agreement shall
be binding upon and inure to the benefit of Debtor and Secured Party and their
respective successors and assigns, except that Debtor may not assign or transfer
its rights or obligations hereunder without the prior written

                                      10
<PAGE>

consent of Secured Party.

               7.10  Severability. Should any provision of this Security
Agreement be deemed unlawful or unenforceable, said provision shall be deemed
several and apart from all other provisions of this Security Agreement and all
remaining provisions of this Security Agreement shall be fully enforceable.

               7.11  Notices. Any notice or request hereunder may be given to
Debtor or to Secured Party at their respective addresses set forth below or at
such other address as may hereafter be specified in a notice designated as a
notice of change of address under this Section. Any notice or request hereunder
shall be given by (a) hand delivery, (b) overnight courier, (c) registered or
certified mail, return receipt requested, or (d) telecopy to the number set out
below (or such other number as may hereafter be specified in a notice designated
as a notice of change of address) with electronic confirmation of its receipt.
Any notice or other communication required or permitted pursuant to this
Agreement shall be deemed given (i) when personally delivered to any officer of
the party to whom it is addressed, (ii) on the earlier of actual receipt thereof
or five (5) days following posting thereof by certified or registered mail,
postage prepaid, or (iii) upon actual receipt thereof when sent by a recognized
overnight delivery service or (iv) upon actual receipt thereof when sent by
telecopier to the number set forth below with electronic confirmation of its
receipt, in each case addressed to each party at its address set forth below or
at such other address as has been furnished in writing by a party to the other
by like notice:

<TABLE>
         <S>                                 <C>
         (A)   If to Collateral Agent at:    CoBank, ACB
                                             5500 S. Quebec Street
                                             Greenwood Village, CO 80111-1913
                                             Attention: Lori O'Flaherty, Vice President
                                             Telephone: (303) 740-4342
                                             Facsimile: (303) 694-5830

               with a copy to:               Blank Rome Comisky & McCauley LLP
                                             One Logan Square
                                             Philadelphia, PA 19103
                                             Attention: Raymond L. Shapiro, Esquire
                                             Telephone: (215) 569-5569
                                             Facsimile: (215) 569-5522

         (B)   If to Debtor at:              Southern States Cooperative, Incorporated
                                             6606 West Broad Street
                                             Richmond, Virginia 23230
                                             Attention: Jonathan A. Hawkins
                                             Telephone: (804) 281-1000
                                             Telecopier: (804) 281-1383

               with a copy to:               Troutman Sanders Mays & Valentine LLP
                                             1111 East Main Street
                                             P.O. Box 1122
                                             Richmond, VA 23218-1122
                                             Attention: C. Cotesworth Pinckney

</TABLE>
                                      11
<PAGE>

                                           Telephone: (804) 697-1200
                                           Telecopier: (804) 697-1339

               with a copy to:             Latham & Watkins
                                           885 Third Avenue, Suite 1000
                                           New York, New York 10002-4802
                                           Attention: Robert Rosenberg, Esquire
                                           Telephone: (212) 906-1200
                                           Telecopier: (212) 751-4864

         (C)   If to Secured Party:        Agway, Inc.
                                           333 Butternut Drive
                                           DeWitt, New York 13214
                                           Attention: Peter O'Neill
                                           Telephone: (315) 449-6568
                                           Telecopier: (315) 449-7451

               with a copy to:             Weil, Gotshal & Manges LLP
                                           767 Fifth Avenue
                                           New York, New York 10153
                                           Attention: Marvin Jacob, Esquire
                                           Telephone: (212) 310-8000
                                           Telecopier: (212) 310-8007

               7.12   Governing Law. This Security Agreement shall be governed
by and interpreted in accordance with the laws of the State of New York, except
to the extent that perfection (and the effect of perfection and nonperfection)
and certain remedies may be governed by the laws of any jurisdiction other than
the State of New York.

               7.13   CONSENT TO JURISDICTION AND SERVICE OF PROCESS. Any
judicial proceeding brought by or against Debtor with respect to any of the
Obligations, this Agreement or any related agreement may be brought in any court
of competent jurisdiction in the State of New York, United States of America,
and, by execution and delivery of this Agreement, Debtor accepts for itself and
in connection with its properties, generally and unconditionally, the
non-exclusive jurisdiction of the aforesaid courts, and irrevocably agrees to be
bound by any judgment rendered thereby in connection with this Agreement. Debtor
hereby waives personal service of any and all process upon it and consents that
all such service of process may be made by registered or certified mail (return
receipt requested) directed to Debtor at its address set forth in Section 7.12
and service so made shall be deemed completed five (5) days after the same shall
have been so deposited in the mails of the United States of Ame rica. Nothing
herein shall affect the right to serve process in any manner permitted by law or
shall limit the right of Secured Party to bring proceedings against Debtor in
the courts of any other jurisdiction. Debtor waives any objection to
jurisdiction and venue of any action instituted hereunder and shall not assert
any defense based on lack of jurisdiction or venue or based upon forum non
conveniens. Any judicial proceeding by Debtor against Secured Party involving,
directly or indirectly, any matter or claim in any way arising out of, related
to or connected with this Agreement or any related agreement, shall be brought

                                      12
<PAGE>

only in courts of the State of New York or the United States District Court for
the Southern District of New York and any appellate court from any thereof.

                  7.14   JURY WAIVER. EACH PARTY TO THIS AGREEMENT HEREBY
EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR
CAUSE OF ACTION (A) ARISING UNDER THIS AGREEMENT OR ANY OTHER INSTRUMENT,
DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH, OR (B) IN
ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES
HERETO OR ANY OF THEM WITH RESPECT TO THIS AGREEMENT OR ANY OTHER INSTRUMENT,
DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH, OR THE
TRANSACTIONS RELATED HERETO OR THERETO IN EACH CASE WHETHER NOW EXISTING OR
HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT OR TORT OR OTHERWISE AND
EACH PARTY HEREBY CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF
ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT ANY PARTY TO
THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH
ANY COURT AS WRITTEN EVIDENCE OF THE CONSENTS OF THE PARTIES HERETO TO THE
WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

                  7.15   FINANCING STATEMENTS.

                         (a)   A copy, including a photocopy, of this Security
Agreement may be filed as a financing statement. Debtor authorizes Secured Party
to file without the signature of Debtor (where permitted by law) one or more
financing or continuation statements, and amendments thereto relative to all or
any part of the Collateral, as Secured Party may deem appropriate in order to
perfect or continue the perfection and priority of Secured Party's security
interest in the Collateral.

                         (b)   Secured Party is hereby authorized to file
financing statements naming Debtor as debtor, in accordance with the Uniform
Commercial Code as adopted in the State of New York, and if necessary, to the
extent applicable, to otherwise file financing statements without Debtor's
signature if permitted by law. Debtor hereby authorizes Secured Part to file all
financing statements and amendments to financing statements describing the
Collateral in any filing office as Secured Party, in its sole discretion may
determine, including financing statements listing "All Assets" in the collateral
description therein. Debtor agrees to comply with the requirements of all
federal and state laws and requests of Secured Party in order for Secured Party
to have and maintain a valid and perfected first security interest in the
Collateral including, without limitation, executing and causing any other person
to execute such documents as Secured Party may require to obtain Control (as
defined in the UCC) over all Deposit Accounts, Electronic Chattel Paper, Letter-
of-Credit Rights and Investment Property.

                  7.16   Cobank Stock. Notwithstanding anything to the contrary
contained herein, CoBank, ACB shall continue to have an exclusive statutory
first lien for the benefit of CoBank, ACB in all equity and distributions which
Debtor may now or hereafter acquire in CoBank, ACB or be entitled to including,
without limitation, CoBank, ACB Class E stock (or any other stock of CoBank,
ACB), patronage dividends, retirement payments thereon and proceeds thereof. The
proceeds of such collateral shall not, however, be applied to the Obligations
due to Secured Party until CoBank, ACB is paid in full. CoBank, ACB shall not be
obligated to set off or otherwise apply such equities to the Debtor's
obligations to CoBank, ACB under any theory of marshalling of assets or
otherwise.

                       [Signatures Follow on Next Page]

                                      13
<PAGE>

         IN WITNESS WHEREOF, Debtor and Secured Party have caused this Security
Agreement to be executed by their duly authorized officers as of the date first
above written.

                                     DEBTOR:

                                     SOUTHERN STATES COOPERATIVE, INCORPORATED

                                     By:   /s/
                                         ______________________________________
                                     Name: ____________________________________
                                     Title: ___________________________________

                                     SECURED PARTY:

                                     AGWAY, INC.

                                     By:   /s/
                                         ______________________________________
                                     Name: ____________________________________
                                     Title: ___________________________________

                                      14<PAGE>

                                                                 EXHIBIT 10.10.2

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

                               MASTER AGREEMENT

                                    Between

                            UNITED PRODUCERS, INC.

                                      And

                       SOUTHERN STATES COOPERATIVE, INC.

                             Dated:  March 2, 2001

================================================================================
<PAGE>

                               TABLE OF CONTENTS
                               -----------------

<TABLE>
<CAPTION>
Title                                                                                                           Page
-----                                                                                                           ----
<S>                                                                                                             <C>
Recitals.......................................................................................................    1
1.   Purchase and Sale of Assets...............................................................................    1
2.   Consideration for Assets..................................................................................    1
     2.1    Purchase Price.....................................................................................    1
     2.2    Final Determination of Agreed Cash Amount..........................................................    2
     2.3    Assumption of Assumed Liabilities..................................................................    2
     2.4    Allocation of Purchase Price.......................................................................    3
3.   Closing...................................................................................................    3
4.   Documents to be Delivered at Closing......................................................................    3
     4.1    Documents to be Delivered by SSC to UPI............................................................    3
     4.2    Documents to be Delivered by UPI to SSC............................................................    4
     4.3    Passage of Title at Closing........................................................................    4
5.   Representations and Warranties by SSC.....................................................................    5
     5.1    Corporate Organization.............................................................................    5
     5.2    Corporate Authority................................................................................    5
     5.3    No Violation.......................................................................................    5
     5.4    Title to Assets....................................................................................    6
     5.5    LLC Membership Interest............................................................................    6
     5.6    Contracts..........................................................................................    6
     5.7    Litigation.........................................................................................    6
     5.8    Compliance with Laws...............................................................................    6
     5.9    No Adverse Change..................................................................................    7
     5.10   Brokers............................................................................................    7
6.   Representations and Warranties by UPI.....................................................................    7
     6.1    Corporate Organization.............................................................................    7
     6.2    Corporate Authority................................................................................    7
     6.3    No Violation.......................................................................................    7
     6.4    Brokers............................................................................................    8
7.   Covenants of SSC..........................................................................................    8
     7.1    Right of First Refusal.............................................................................    8
     7.2    Employees..........................................................................................    9
     7.3    Post-Closing Accounting and Information Systems Support............................................    9
     7.4    Certain Post-Closing Transactions..................................................................    9
8.   Covenants of UPI..........................................................................................   11
     8.1    Certain Post-Closing Transactions..................................................................   11
     8.2    Retention of Records...............................................................................   11
9.   Conditions Precedent to SSC's Obligation to Sell the Assets and to Consummate the Transactions............   11
     9.1    UPI's Performance..................................................................................   11
     9.2    Opinion of Counsel.................................................................................   12
     9.3    Consents and Approvals.............................................................................   12
</TABLE>

                                       i
<PAGE>

<TABLE>
<S>                                                                                                                 <C>
10.  Conditions Precedent to UPI's Obligation to Purchase the Assets and to Consummate the Transactions..........   12
     10.1     SSC's Performance..................................................................................   12
     10.2     Opinion of Counsel.................................................................................   12
     10.3     Consents and Approvals.............................................................................   12
11.  Survival of Representations and Warranties; Indemnification.................................................   12
     11.1     Survival of Representations and Warranties.........................................................   12
     11.2     SSC's Indemnification Obligations..................................................................   13
     11.3     UPI's Indemnification Obligations..................................................................   13
     11.4     Procedure for Indemnification Claims...............................................................   13
     11.5     Limitations on Amount--SSC.........................................................................   15
     11.5A    Limitations on Amount--UPI.........................................................................   15
12.  General Provisions..........................................................................................   16
     12.1     Public Announcements...............................................................................   16
     12.2     Assurance of Further Action........................................................................   16
     12.3     Expenses...........................................................................................   16
     12.4     Notices............................................................................................   16
     12.5     Rights Under this Agreement: Nonassignability......................................................   17
     12.6     Entire Agreement and Modification..................................................................   17
     12.7     Schedules..........................................................................................   18
     12.8     Governing Law......................................................................................   18
     12.9     Knowledge..........................................................................................   18
     12.10    Headings: References to Sections, Exhibits and Schedules...........................................   18
     12.11    Counterparts.......................................................................................   18
LOCATION LIST OF DEFINED TERMS...................................................................................   20
LIST OF EXHIBITS AND SCHEDULES...................................................................................   22
</TABLE>

                                      ii
<PAGE>

                               MASTER AGREEMENT
                               ----------------

     THIS MASTER AGREEMENT (this "Agreement") is entered into this 2nd day of
March, 2001, between United Producers, Inc., an Ohio corporation organized and
deemed non-profit under Chapter 1729 of the Ohio Revised Code ("UPI"), and
Southern States Cooperative, Inc., a Virginia corporation ("SSC").

                                  WITNESSETH
                                  ----------

     WHEREAS, UPI desires to purchase from SSC, and SSC desires to sell to UPI,
certain assets of SSC relating to SSC's livestock marketing business, and UPI
and SSC desire to enter into certain additional arrangements, all upon the terms
and conditions hereinafter set forth; and

     NOW, THEREFORE, the parties hereto agree as follows:

     1.   Purchase and Sale of Assets. Upon the terms and conditions set forth
          ---------------------------
in this Agreement, UPI agrees to purchase from SSC, and SSC agrees to sell,
convey, assign, transfer and deliver to UPI, at the Closing provided for in
Section 3, the following assets (collectively, the "Assets"):

          1.1  all files, records and information located at the Leased
Livestock Marketing Facilities and relating to the conduct of the business as
conducted by SSC at the Leased Livestock Marketing Facilities prior to the
Effective Time (the "Records");

          1.2  the membership interest of SSC in Southern States/Parks, LLC, a
Virginia limited liability company (the "LLC"), identified with more
particularity on Exhibit 1.2 (the "LLC Membership Interest");
                 -----------

          1.3  the customer information identified on Exhibit 1.3 (the
                                                      -----------
"Intellectual Property");

          1.4  the inventories of livestock identified on Exhibit 1.4 (the
                                                          -----------
"Inventory Items");

          1.5  the inventories of raw materials and supplies located at the
livestock marketing facilities identified on Exhibit 1.5A (the "Leased Livestock
                                             ------------
Marketing Facilities"), and the trucks, tractors, trailers and equipment
identified on Exhibit 1.5B (collectively, the "Tangible Personal Property"); and
              ------------

          1.6  any agreements, contracts, instruments or other similar
arrangements and rights thereunder (each, a "Contract") associated with the
Assets or the Leased Livestock Marketing Facilities, including without
limitation those identified on Exhibit 1.6 (the "Assigned Contracts").
                               -----------

     2.   Consideration for Assets.
          ------------------------

          2.1  Purchase Price. In consideration for the Assets, UPI will pay to
               --------------
SSC the sum of (i) sixty-five thousand and no/100 dollars ($65,000.00) plus (ii)
an amount equal to the Agreed Cash Amount, as defined below (collectively, the
"Purchase Price"). As used herein, the

                                       1
<PAGE>

"Agreed Cash Amount" shall mean the sum of (x) the Agreed Value of the Inventory
Items plus (y) the Agreed Value of the Tangible Personal Property, each as
described and determined below. At Closing, UPI will pay to SSC in cash or
immediately available funds the sum of Six Hundred Thousand Dollars
($600,000.00), subject to adjustment pursuant to provisions of Section 2.2
below.

          2.2  Final Determination of Agreed Cash Amount. The "Agreed Value of
               -----------------------------------------
the Inventory Items" and the "Agreed Value of the Tangible Personal Property"
shall mean the respective amounts determined in accordance with this Section
2.2. Immediately prior to the Closing, SSC will conduct an inventory count of
the Inventory Items and the Tangible Personal Property. The results of such
inventory count shall be provided to UPI not later than five business days
following the Closing. UPI shall have a period of 15 days from receipt of such
inventory count to review and confirm the results of such inventory. The amount
of the Agreed Value of the Inventory Items shall be equal to the aggregate book
values, as shown on the normally-prepared records of SSC immediately prior to
Closing, of those Inventory Items identified in such inventory count. The amount
of the Agreed Value of the Tangible Personal Property shall be equal to the
aggregate book values, as shown on the normally-prepared records of SSC
immediately prior to Closing, of those items of Tangible Personal Property
identified in such inventory count. SSC and UPI shall provide to one another
information in their possession to facilitate such calculations, and shall work
collaboratively and in good faith to mutually determine the Agreed Value of the
Inventory Items and the Agreed Value of the Tangible Personal Property within 30
days after Closing. In the event that UPI and SSC are not able to mutually agree
on such values within such 30-day period, then the parties shall submit their
dispute for resolution to an independent certified public accounting firm
selected by reasonable mutual agreement of UPI and SSC. The costs of such
dispute resolution shall be borne equally by UPI and SSC. Not later than ten
days following agreement or final determination of the Agreed Value of the
Inventory Items and the Agreed Value of the Tangible Personal Property (i) UPI
shall pay to SSC, in immediately available funds, the amount by which (x) the
Agreed Cash Amount exceeds $535,000 or (ii) if the Agreed Cash Amount is less
than $535,000, SSC shall pay to UPI the amount by which (x) $535,000 exceeds (y)
the Agreed Cash Amount.

          2.3  Assumption of Assumed Liabilities.
               ---------------------------------

               2.3.1  UPI will assume and undertake to perform, pay and
     discharge only those obligations arising and accruing from and after the
     Effective Time, as defined below, under and pursuant to the agreements
     identified on Exhibit 1.6 and any other Assigned Contracts which UPI agrees
                   -----------
     to assume in accordance with Section 2.3.2 (the "Assumed Liabilities"),
     excluding in all cases any obligation resulting from, arising out of or
     caused by any default or non-performance by SSC prior to the date hereof
     with respect to the Assigned Contracts.

               2.3.2  SSC may, from time to time, notify UPI of any Contract
     included in the definition of "Assigned Contracts" which is not identified
     on Exhibit 1.6, if any, and which SSC desires that UPI assume. In UPI's
        -----------
     sole discretion, UPI may either expressly assume such Contract or refuse to
     accept such Contract. In the event that UPI expressly assumes such
     Contract, then those obligations arising and accruing from and after the
     Effective Time, as defined below, under and pursuant to such Contract shall

                                       2
<PAGE>

     thereupon be deemed to be additional Assumed Liabilities, and such Contract
     shall be deemed to be listed on Exhibit 1.6. If UPI declines or otherwise
                                     -----------
     does not, within 30 days after such notice from SSC, expressly agree to
     assume such Contract, then such Contract shall be deemed to be excluded
     from the definition of "Assigned Contracts".

               2.3.3  Other than the Assumed Liabilities, UPI shall not assume
     any debts, liabilities or obligations of SSC or any person or entity which
     directly or indirectly controls, is directly or indirectly controlled by or
     is directly or indirectly under common control with, SSC, and all such
     debts, liabilities and obligations shall be and remain the responsibility
     of SSC or such other person or entity, as the case may be.

               2.4.4  Any revenue and expense items relating to the Assets or
     the Assigned Contracts shall be prorated on a per diem basis effective as
     of the Effective Time.

          2.4  Allocation of Purchase Price. The Purchase Price shall be
               -----------------------------
allocated among the Assets in the manner specified on Exhibit 2.4. As soon as
                                                      -----------
may be practicable after the Closing and prior to filing any tax return which
includes information related to the transactions contemplated in this Agreement,
SSC shall prepare IRS Form 8594 in the manner specified on Exhibit 2.4. UPI and
                                                           -----------
SSC agree that, except as otherwise required by law, such allocation shall be
binding on UPI and SSC for all federal, state and local tax purposes, and UPI
and SSC shall file with their respective federal income tax returns consistent
Internal Revenue Service Forms 8594-Asset Acquisition Statements Under Section
1060, including any required amendments thereto, which shall reflect the
allocations set forth in such allocation.

     3.   Closing. The closing of the purchase and sale of the Assets (the
          -------
"Closing") shall take place at the office of Vorys, Sater, Seymour and Pease
LLP, 52 East Gay Street, Columbus, Ohio 43215, at 10:00 a.m., local time, on
March 2, 2001 (the "Closing Date"). The Closing shall be effective as of 12:01
a.m., local time, on March 3, 2001 (the "Effective Time").

     4.   Documents to be Delivered at Closing.
          ------------------------------------

          4.1  Documents to be Delivered by SSC to UPI. At the Closing, SSC will
               ---------------------------------------
deliver to UPI the items identified as follows, duly executed, delivered,
acknowledged and notarized, as applicable, by all signatories thereto other than
UPI (the "SSC Related Documents"):

               4.1.1  a general instrument of sale, conveyance, assignment,
     transfer and delivery as shall be effective to vest in UPI good and
     sufficient title to the Records, Intellectual Property, the Inventory Items
     and the Tangible Personal Property, in the form of Exhibit 4.1.1;
                                                        --------------

               4.1.2  [RESERVED];

               4.1.3  an Assignment of Interest and Amendment to Operating
     Agreement in respect of the LLC Membership Interest, in the form of Exhibit
                                                                         -------
     4.1.3;
     -----

                                       3
<PAGE>

               4.1.4  an Assignment and Assumption Agreement in respect of the
     Assumed Liabilities, in the form of Exhibit 4.1.4 (the "Assignment and
                                         -------------
     Assumption Agreement");

               4.1.5  such specific instruments of sale, conveyance, assignment,
     transfer and delivery as to such of the Assets included within such
     instrument of sale, conveyance, assignment, transfer and delivery as UPI
     shall reasonably request;

               4.1.6  a Marketing Agreement in the form of Exhibit 4.1.6 (the
                                                           -------------
     "Marketing Agreement");

               4.1.7  a Lease Agreement in respect of each of the Leased
     Livestock Marketing Facilities, in the form of Exhibit 4.1.7A (the
                                                    --------------
     "Leases"), and a Memorandum of Lease Agreement in respect of each of the
     Leased Livestock Marketing Facilities, in the form of Exhibit 4.1.7B (the
                                                           --------------
     "Memorandum of Lease Documents"), but completed to include the appropriate
     specific terms as specified on Exhibit 1.5A;
                                    ------------

               4.1.8  a Memorandum of Right of First Refusal Agreement in
     respect of each parcel of real property identified on Exhibit 4.1.8A (each
                                                           --------------
     a "Specified Non-Leased Property" and collectively the "Specified Non-
     Leased Properties"), in the form of Exhibit 4.1.8B (the "Memorandum of
                                         --------------
     Right of First Refusal Agreement Documents"), but completed to make
     reference to the particular Specified Non-Leased Properties;

               4.1.9  a certificate of the Secretary of SSC in the form of
     Exhibit 4.1.9 certifying as to certain information in respect of SSC; and
     -------------

               4.1.10 such other certificates and documents as UPI or its
     counsel may reasonably request.

          4.2  Documents to be Delivered by UPI to SSC. At the Closing, UPI will
               ---------------------------------------
deliver to SSC the items identified as follows, duly executed, delivered,
acknowledged and notarized, as applicable, by UPI (the "UPI Related Documents"):

               4.2.1  the Marketing Agreement, the Leases, the Memorandum of
     Lease Documents, the Memorandum of Right of First Refusal Agreement
     Documents, the Assignment of Membership Interest and the Assignment and
     Assumption Agreement;

               4.2.2  a certificate of the Secretary of UPI in the form of

     Exhibit 4.2.2 certifying as to certain information in respect of UPI; and
     -------------

               4.2.3  such other certificates and documents as SSC or its
     counsel may reasonably request.

          4.3  Passage of Title at Closing.  At the Effective Time, title to the
               ---------------------------
Assets shall pass to UPI and SSC will put UPI in full, complete and quiet
possession and enjoyment of all of the Assets.

                                       4
<PAGE>

     5.   Representations and Warranties by SSC. SSC represents and warrants to
          -------------------------------------
UPI as follows:

          5.1  Corporate Organization. SSC is a corporation duly organized,
               ----------------------
validly existing and in good standing under the laws of the State of Virginia,
and has the corporate power and authority to carry on its business as now being
conducted and to own and operate the properties and assets now owned and being
operated by it.

          5.2  Corporate Authority.
               -------------------

               5.2.1  SSC has the corporate power to enter into this Agreement
     and the SSC Related Documents and to carry out its obligations hereunder
     and thereunder.

               5.2.2  The execution, delivery and performance of this Agreement
     and the SSC Related Documents and the consummation of the transactions
     contemplated hereby and thereby have been duly authorized by the Board of
     Directors of SSC and no other director, delegate, shareholder, member or
     other corporate proceeding on the part of SSC is necessary to authorize the
     execution and delivery of this Agreement or the SSC Related Documents or
     the performance of any of the transactions contemplated hereby or thereby.

               5.2.3  This Agreement has been, and at the Closing each of the
     SSC Related Documents will be, duly executed and delivered on behalf of
     SSC, and this Agreement is, and at the Closing each of the SSC Related
     Documents will be, a legal, valid and binding obligation of SSC,
     enforceable against SSC in accordance with its terms.

          5.3  No Violation. Except as set forth on Schedule 5.3, neither the
               ------------                         ------------
execution, delivery or performance of this Agreement or the SSC Related
Documents nor the consummation of the transactions contemplated hereby or
thereby:

               5.3.1  will violate or conflict with the Articles of
     Incorporation or By-Laws of SSC;

               5.3.2  will result in any breach of or default under any
     provision of any contract or agreement of any kind to which SSC is a party
     or by which SSC is bound or to which any property or asset of SSC is
     subject, which breach or default would adversely affect the Assets or SSC's
     ability to perform its obligations under this Agreement or the SSC Related
     Documents;

               5.3.3  is prohibited by or requires SSC to obtain or make any
     consent, authorization, approval, registration or filing under any statute,
     law, ordinance, regulation, rule, judgment, decree or order of any court or
     governmental agency, board, bureau, body, department or authority, or of
     any other person;

               5.3.4  will cause any acceleration of maturity of any note,
     instrument or other obligation to which SSC is a party or by which SSC is
     bound or with respect to which SSC is an obligor or guarantor; or

                                       5
<PAGE>

               5.3.5  will result in the creation or imposition of any lien,
     claim, charge, restriction, equity or encumbrance of any kind whatsoever
     upon, or give to any other person any interest or right (including any
     right of termination or cancellation) in or with respect to the Assets.

          5.4  Title to Assets. SSC has good and marketable title to all of the
               ---------------
Assets, subject to no mortgage, pledge, conditional sales contract, lien,
security interest, right of possession in favor of any third party, claim or
other encumbrance, except as set forth on Schedule 5.4. At the Effective Time,
                                          ------------
UPI shall own all of the Assets, free and clear of any such encumbrance, except
as set forth on Schedule 5.4.
                ------------

          5.5  LLC Membership Interest. SSC owns of record and is the sole legal
               -----------------------
and beneficial owner of the LLC Membership Interest. Except as set forth in the
Operating Agreement of the LLC, dated April 22, 1999 (the "LLC Operating
Agreement"), (i) no legend or other reference to any purported pledge, lien,
security interest, restriction on transfer or other encumbrance appears on any
certificate representing the LLC Membership Interest or any governing document
affecting the LLC Membership Interest, and (ii) there are no contractual
restrictions on the transfer of the LLC Membership Interest. SSC has performed
all of its obligations under the governing documents affecting the LLC
Membership Interest required to be performed through the Effective Time, and UPI
will have no obligations in respect thereof.

          5.6  Contracts. Except as set forth on Schedule 5.6, SSC is not a
               ---------                         ------------
party to any written or oral contract respecting or affecting the Assets. Each
contract or other agreement listed on Schedule 5.6 is in full force and effect.
                                      ------------
SSC is not in default in the observance or the performance of any term or
obligation to be performed by it under any contract listed on Schedule 5.6, and,
                                                              ------------
to the best of SSC's knowledge, no other person is in default in the observance
or the performance of any term or obligation to be performed by it under any
contract listed on Schedule 5.6. SSC has delivered to UPI all originals of all
                   ------------
written contracts listed on Schedule 5.6 as in effect on the date hereof which
                            ------------
are in the possession of SSC. All of the bull leases referred to on Exhibit 1.6
                                                                    -----------
are on terms and conditions substantially similar to those included in the form
of bull lease attached hereto as Schedule 5.6A.
                                 -------------

          5.7  Litigation. Except as set forth on Schedule 5.7, there are no
               ----------                         ------------
actions, suits, proceedings or investigations, either at law or in equity, or
before any commission or other administrative authority in any United States or
foreign jurisdiction, of any kind now pending or, to SSC's knowledge, threatened
or proposed in any manner, or any circumstances which should or could reasonably
form the basis of any such action, suit, proceeding or investigation, respecting
or affecting the Assets.

          5.8  Compliance with Laws. The Assets and the Leased Livestock
               --------------------
Marketing Facilities, as used by SSC since April 1, 1998, and such use by SSC,
are not and have not, since April 1, 1998, been in violation of any applicable
federal, state, local and foreign statutes, laws, ordinances, regulations,
rules, permits, judgments, orders or decrees, including without limitation those
relating to building or zoning matters. This Section 5.8 shall not apply to
environmental matters.

                                       6
<PAGE>

          5.9  No Adverse Change. Since January 1, 2001, there has not been,
               -----------------
other than in the ordinary course of SSC's business consistent with past
practice: (i) any material adverse change in the condition of any of the Assets
or the Leased Livestock Marketing Facilities; (ii) any actual or, to SSC's
knowledge, threatened damage, destruction or loss, whether or not covered by
insurance, materially and adversely affecting any of the Assets or the Leased
Livestock Marketing Facilities; or (iii) any other actual or, to SSC's
knowledge, threatened event or condition of any character materially and
adversely affecting any of the Assets or the Leased Livestock Marketing
Facilities.

          5.10 Brokers. All negotiations relative to this Agreement, the SSC
               -------
Related Documents and the transactions contemplated hereby have been carried on
by SSC directly with UPI and without the intervention of any other person and in
such manner as not to give rise to any valid claim against any of the parties
for any finder's fee, brokerage commission or like payment.

     6.   Representations and Warranties by UPI. UPI represents and warrants to
          -------------------------------------
SSC as follows:

          6.1  Corporate Organization. UPI is a corporation duly organized,
               ----------------------
validly existing and in good standing under the laws of the State of Ohio, and
has the corporate power and authority to carry on its business as now being
conducted and to own and operate the properties and assets now owned and being
operated by it.

          6.2  Corporate Authority.
               -------------------

               6.2.1  UPI has the corporate power to enter into this Agreement
     and the UPI Related Documents and to carry out its obligations hereunder
     and thereunder.

               6.2.2  The execution, delivery and performance of this Agreement
     and the UPI Related Documents and the consummation of the transactions
     contemplated hereby and thereby have been duly authorized by the Board of
     Directors of UPI and no other director, delegate, shareholder, member or
     other corporate proceeding on the part of UPI is necessary to authorize the
     execution and delivery of this Agreement or the UPI Related Documents or
     the performance of any of the transactions contemplated hereby or thereby.

               6.2.3  This Agreement has been, and at the Closing each of the
     UPI Related Documents will be, duly executed and delivered on behalf of
     UPI, and this Agreement is, and at the Closing each of the UPI Related
     Documents will be, a legal, valid and binding obligation of UPI,
     enforceable against UPI in accordance with its terms.

          6.3  No Violation. Except as set forth on Schedule 6.3, neither the
               ------------                         ------------
execution, delivery or performance of this Agreement or the UPI Related
Documents nor the consummation of the transactions contemplated hereby or
thereby:

               6.3.1  will violate or conflict with the Articles of
     Incorporation or Bylaws of UPI;

                                       7
<PAGE>

               6.3.2  will result in any breach of or default under any
     provision of any contract or agreement of any kind to which UPI is a party
     or by which UPI is bound or to which any property or asset of UPI is
     subject;

               6.3.3  is prohibited by or requires UPI to obtain or make any
     consent, authorization, approval, registration or filing under any statute,
     law, ordinance, regulation, rule, judgment, decree or order of any court or
     governmental agency, board, bureau, body, department or authority, or of
     any other person;

               6.3.4  will cause any acceleration of maturity of any note,
     instrument or other obligation to which UPI is a party or by which UPI is
     bound or with respect to which UPI is an obligor or guarantor; or

               6.3.5  will result in the creation or imposition of any lien,
     claim, charge, restriction, equity or encumbrance of any kind whatsoever
     upon, or give to any other person any interest or right (including any
     right of termination or cancellation) in or with respect to any of the
     properties, assets, business, agreements or contracts of UPI.

          6.4  Brokers. All negotiations relative to this Agreement, the UPI
               -------
Related Documents and the transactions contemplated hereby have been carried on
by UPI directly with SSC and without the intervention of any other person and in
such manner as not to give rise to any valid claim against any of the parties
for any finder's fee, brokerage commission or like payment.

     7.   Covenants of SSC. SSC covenants and agrees with UPI as follows:
          ----------------

          7.1  Right of First Refusal. The parties acknowledge and agree as
               ----------------------
follows:

               7.1.1  If, during the period beginning at the Effective Time and
     ending on February 28, 2007, SSC receives a bona fide offer (an "Offer") to
     purchase or acquire all or any portion of any Specified Non-Leased
     Property, and SSC desires to sell or transfer such Specified Non-Leased
     Property, SSC may sell or transfer such Specified Non-Leased Property only
     after first offering such Specified Non-Leased Property to UPI as provided
     below. SSC shall deliver to UPI a notice of such Offer which includes a
     copy of the Offer, specifying the name and address of the potential
     purchaser or transferee (the "Offeror"), the Specified Non-Leased Property
     with respect to which the Offer is made (the "Offered Property"), the
     proposed price for the Offered Property (the "Offering Price"), the terms
     of the proposed sale or transfer (the "Offering Terms"), and the date the
     Offer was made (the "Offer Date").

               7.1.2  Within 10 days following the notice specified in Section
     7.1.1 above, UPI shall have the right to elect to purchase all (but not
     less than all) of the Offered Property at the Offering Price. The terms of
     the purchase shall be the Offering Terms, provided that UPI shall have a
     period of not less than 60 days from the date of the notice specified in
     Section 7.1.1 above in which to close on the purchase. Notice of UPI's
     acceptance must be mailed or delivered to SSC within such 10-day period.

                                       8
<PAGE>

               7.1.3  To the extent that UPI fails to validly exercise its
     option with respect to the Offered Property, SSC may sell or transfer the
     Offered Property to the Offeror at the Offering Price and on the Offering
     Terms. If SSC fails to sell or transfer such Offered Property before the
     180th day following the Offer Date, the Offered Property shall again become
     subject to the terms and conditions of this Section 7.1 as if such Offer
     had not been made.

               7.1.4  If UPI elects to record one or more Memoranda of Right of
     First Refusal Agreement, it shall pay any and all costs associated with
     such recordation.

          7.2  Employees. UPI is not obligated to employ any past, present or
               ---------
future employee of SSC. However, UPI in its sole discretion is permitted to
recruit and employ personnel of SSC who are involved in the ownership or
operation of the Assets and the Leased Livestock Marketing Facilities, on terms
as may be mutually agreeable to UPI and any such individuals.

          7.3  Post-Closing Accounting and Information Systems Support.
               -------------------------------------------------------
Following the Closing, SSC shall provide or cause to be provided to or for the
benefit of UPI certain transitional accounting and information systems support
services, on a cost-recovery basis and in accordance with such terms and
conditions as SSC and UPI may agree.

          7.4  Certain Post-Closing Transactions. SSC shall use its reasonable
               ---------------------------------
good faith efforts following the Closing to negotiate and enter into, or to
cause to be negotiated and entered into, as promptly as practicable following
the Closing, the transactions summarized as follows (the "Specified Post-Closing
Transactions"):

               7.4.1  Loan Purchase Transaction. Producers Credit Corporation
                      -------------------------
     ("PCC"), which is an affiliate of UPI, and Michigan Livestock Credit
     Corporation ("MLCC"), which is an affiliate of SSC, would enter into a loan
     purchase transaction whereby PCC would purchase from MLCC selected loan
     assets and feeding agreements in accordance with the term sheet attached as
     Exhibit 7.4.1, which is incorporated herein by reference, and on such
     -------------
     further terms and pursuant to such documentation as shall be reasonably
     acceptable to PCC and MLCC, and all subject to PCC having obtained
     financing sufficient to consummate such transaction.

               7.4.2. Investment by SFC in PCC. MLCC would enter into a
                      ------------------------
     transaction whereby MLCC would purchase from PCC shares of PCC's non-
     voting, 6% cumulative Class A Preferred Stock in an amount equal to one-
     fifth of the total purchase price for the loan purchase transaction
     referred to in Section 7.4.1, on such terms and pursuant to such
     documentation as shall be reasonably acceptable to PCC and MLCC, and all
     subject to MLCC having obtained financing sufficient to consummate such
     transaction.

               7.4.3. Loan Transaction. SSC would enter into a transaction
                      ----------------
     whereby SSC would loan to UPI an amount equal to $2,000,000, in accordance
     with the term sheet attached as Exhibit 7.4.3, which is incorporated herein
                                     -------------
     by reference, and on such further terms and pursuant to such documentation
     as shall be reasonably acceptable to SSC and UPI.

                                       9
<PAGE>

               7.4.4. Conveyance of Capital Stock in Exchange for UPI Equity
                      ------------------------------------------------------
     Credits. SSC shall convey, assign or transfer, or cause to be conveyed,
     -------
     assigned or transferred, to UPI the capital stock identified on Exhibit
                                                                     -------
     7.4.4 (the "Capital Stock"). At such time or times as, and to the extent
     -----
     that, the Capital Stock is effectively conveyed, assigned or transferred to
     UPI, and actually reissued to and in the name of UPI, UPI will issue to SSC
     non-voting, non-redeemable, uncertified capital credits in UPI (the "UPI
     Equity Credits") in the aggregate amount of the book value of such Capital
     Stock conveyed, assigned or transferred as stated on SSC's normally-
     prepared books as of the date of such conveyance. At such time or times as
     UPI issues UPI Equity Credits to SSC pursuant to this Section 7.4.4, and as
     a condition precedent to such issuance, SSC will provide UPI with an
     officer's certificate, dated the date of such issuance, certifying that SSC
     acknowledges, understands and agrees with, and certifies, represents and
     warrants to UPI as follows:

                      7.4.4.1   SSC has been given access to all books of
          account, records and other documents concerning UPI and the UPI Equity
          Credits. In addition, SSC has had the opportunity to ask questions and
          receive answers from the officers and directors of UPI concerning UPI,
          the UPI Equity Credits, and any additional information deemed
          necessary by SSC to verify the accuracy and adequacy of the
          information provided to SSC by UPI. All questions have been answered
          to the full satisfaction of SSC.

                      7.4.4.2   SSC understands and acknowledges that the UPI
          Equity Credits are speculative securities and involve a high degree of
          risk and that no federal or state agency has made any finding or
          determination as to the fairness for public or private investment in,
          nor any recommendation or endorsement of, the UPI Equity Credits as an
          investment. SSC (either alone or with SSC's purchaser representative)
          has such knowledge and experience in business and financial matters
          that SSC is capable of evaluating the merits and risks of an
          investment in the UPI Equity Credits. SSC's financial situation is
          such that SSC can afford a complete loss of SSC's investment in UPI.

                      7.4.4.3   SSC is acquiring the UPI Equity Credits for
          SSC's own account, for investment purposes only and not with a present
          intention of entering into or making any subsequent sale, assignment,
          conveyance, pledge, hypothecation or other transfer thereof. SSC has
          no need for liquidity in this investment, recognizes that there will
          be no market for the resale of the UPI Equity Credits, and understands
          that there are restrictions on the subsequent resale or other transfer
          of the UPI Equity Credits. SSC understands and acknowledges that the
          UPI Equity Credits have not been registered under the Securities Act
          of 1933, as amended (the "Act"), or under the securities laws of any
          state, but have been offered and sold pursuant to and in reliance upon
          exemptions from registration thereunder. SSC understands and
          acknowledges that, as a consequence of the restrictions on subsequent
          transfer imposed by the foregoing exemptions, the UPI Equity Credits
          may not be subsequently sold, assigned, conveyed, pledged,
          hypothecated or otherwise transferred by a holder thereof

                                      10
<PAGE>

          except pursuant to (i) an effective registration statement registering
          the UPI Equity Credits under the Act and/or under applicable state
          securities laws, or (ii) an opinion of counsel obtained by such holder
          and which is satisfactory to UPI, that such registration under the Act
          and/or under applicable state securities laws is not required for such
          holder to lawfully effect such subsequent sale, assignment,
          conveyance, pledge, hypothecation or other transfer. UPI reserves and
          shall have the right to refuse to accept or register the assignment or
          other transfer of any of the UPI Equity Credits unless and until the
          conditions to such assignment or other transfer specified in this
          Agreement have been satisfied.

                    7.4.4.4    Upon the reissuance of any such Capital Stock in
          the name of UPI, UPI shall own of record and be the sole legal and
          beneficial owner of such Capital Stock, free and clear of any pledge,
          conditional sales contract, lien or security interest.

     8.   Covenants of UPI.  UPI covenants and agrees with SSC as follows:
          ----------------

          8.1  Certain Post-Closing Transactions.  UPI shall use its reasonable
               ---------------------------------
good faith efforts following the Closing to negotiate and enter into, or to
cause to be negotiated and entered into, as promptly as practicable following
the Closing, the Specified Post-Closing Transactions.

          8.2  Retention of Records.  On the Closing Date, SSC will leave the
               --------------------
Records at the Leased Livestock Marketing Facilities.  SSC shall be entitled to
maintain copies of any Records which SSC has delivered to UPI pursuant to this
Agreement.  Except as otherwise consented to by SSC, following the Closing for a
period of six years from the Effective Time UPI agrees to both: (i) hold the
originals of any Records which SSC has delivered to UPI pursuant to this
Agreement and not to destroy or dispose of such Records; provided that, if it
desires to destroy or dispose of such Records during such period, it will first
offer to SSC in writing at least 60 days prior to such destruction or
disposition to surrender them to SSC at SSC's expense, and if SSC does not
accept such offer within 20 days after receipt of such offer, UPI may take such
action; and (ii) afford SSC and its accountants, counsel and representatives,
during normal business hours, upon reasonable request to the Chief Executive
Officer or to any other executive officer of UPI at least 48 hours in advance,
full access to such Records at no cost to SSC (other than for reasonable out-of-
pocket expenses incurred by UPI); provided however, that such access will not
operate to cause the waiver of any attorney-client, work product or like
privilege; provided, further, that in the event of any litigation nothing herein
shall limit either party's rights of discovery under applicable law.

     9.   Conditions Precedent to SSC's Obligation to Sell the Assets and to
          ------------------------------------------------------------------
Consummate the Transactions.  The obligation of SSC to sell the Assets to UPI
---------------------------
and to consummate the transactions contemplated by this Agreement is subject to
the fulfillment prior to or at the Closing of the following conditions:

          9.1  UPI's Performance.  There shall not be any material error,
               -----------------
misstatement or omission in the representations and warranties made by UPI in
this Agreement or the UPI Related Documents; all representations and warranties
by UPI contained in this Agreement or the UPI Related Documents or in any
written statement delivered by UPI to SSC pursuant to this

                                      11
<PAGE>

Agreement or the UPI Related Documents shall be true in all material respects;
and UPI shall have performed and complied in all material respects with all the
terms, provisions and conditions of this Agreement and the UPI Related Documents
to be performed and complied with by UPI at or before the Closing.

          9.2  Opinion of Counsel.  SSC shall have received an opinion, dated
               ------------------
the Closing Date, of Vorys, Sater, Seymour and Pease LLP, counsel for UPI, in
the form attached hereto as Exhibit 9.2.
                            -----------

          9.3  Consents and Approvals.  SSC and UPI shall have obtained all
               ----------------------
consents, authorizations and approvals under all statutes, laws, ordinances,
regulations, rules, judgments, decrees and orders of any court or governmental
agency, board, bureau, body, department or authority or of any other person
required to be obtained by SSC or UPI, as the case may be, in connection with
the execution, delivery and performance of this Agreement, the UPI Related
Agreements and the SSC Related Agreements and the consummation of the
transactions contemplated hereby and thereby.

     10.  Conditions Precedent to UPI's Obligation to Purchase the Assets and to
          ----------------------------------------------------------------------
Consummate the Transactions.  The obligation of UPI to purchase the Assets and
---------------------------
to consummate the transactions contemplated by this Agreement is subject to the
fulfillment prior to or at the Closing of the following conditions:

          10.1 SSC's Performance.  There shall not be any material error,
               -----------------
misstatement or omission in the representations and warranties made by SSC in
this Agreement or the SSC Related Agreements; all representations and warranties
by SSC contained in this Agreement or the SSC Related Agreements or in any
written statement delivered by SSC to UPI pursuant to this Agreement or the SSC
Related Agreements shall be true; and SSC shall have performed and complied in
all material respects with all the terms, provisions and conditions of this
Agreement and the SSC Related Agreements to be performed and complied with by
SSC at or before the Closing.

          10.2 Opinion of Counsel.  UPI shall have received an opinion, dated
               ------------------
the Closing Date, of Troutman Sanders Mays & Valentine LLP, counsel for SSC, in
the form attached hereto as Exhibit 10.2.
                            ------------

          10.3 Consents and Approvals.  SSC and UPI shall have obtained all
               ----------------------
consents, authorizations and approvals under all statutes, laws, ordinances,
regulations, rules, judgments, decrees and orders of any court or governmental
agency, board, bureau, body, department or authority or of any other person
required to be obtained by SSC or UPI, as the case may be, in connection with
the execution, delivery and performance of this Agreement, the UPI Related
Agreements and the SSC Related Agreements and the consummation of the
transactions contemplated hereby and thereby.

     11.  Survival of Representations and Warranties; Indemnification.
          -----------------------------------------------------------

          11.1 Survival of Representations and Warranties.  No party shall have
               ------------------------------------------
any liability (for indemnification or otherwise) with respect to any
representation or warranty in this Agreement, other than those in Sections 5.1,
5.2, 5.4, 6.1 and 6.2, unless at or before 5:00 p.m.,

                                      12
<PAGE>

Richmond, Virginia time, on August 31, 2002, such party is given notice of a
claim specifying the factual basis of that claim in reasonable detail to the
extent then known by the party making the claim. A claim with respect to
Sections 5.1, 5.2, 5.4, 6.1 or 6.2 may be made at any time.

          11.2 SSC's Indemnification Obligations.  Subject to Section 11.1, SSC
               ---------------------------------
shall indemnify and hold UPI harmless against any and all losses, costs and
expenses (including, without limitation, legal and other expenses) ("Damages")
resulting from or relating to:

               11.2.1  any misrepresentation or breach of any warranty of SSC
     contained in this Agreement, in the SSC Related Documents or in any
     schedule of SSC or any certificate delivered by SSC at the Closing;

               11.2.2  any breach of any covenant of SSC contained in this
     Agreement or the SSC Related Documents; and

               11.2.3  any debt, liability or obligation of SSC, other than the
     Assumed Liabilities;

and any and all actions, suits, demands, assessments or judgments with respect
to any claim arising out of or relating to the subject matter of the
indemnification.

          11.3 UPI's Indemnification Obligations.  Subject to Section 11.1, UPI
               ---------------------------------
shall indemnify and hold SSC harmless against any and all Damages resulting from
or relating to:

               11.3.1  any misrepresentation or breach of warranty of UPI
     contained in this Agreement, in the UPI Related Documents or in any
     schedule of UPI or in any certificate delivered by UPI at the Closing;

               11.3.2  any breach of any covenant of UPI contained in this
     Agreement or in the UPI Related Documents; and

               11.3.3  the Assumed Liabilities;

and any and all actions, suits, demands, assessments or judgments with respect
to any claim arising out of or relating to the subject matter of the
indemnification.

          11.4 Procedure for Indemnification Claims.  The respective
               ------------------------------------
indemnification obligations of SSC and UPI pursuant to Sections 11.2 and 11.3
shall be conditioned upon compliance by SSC and UPI with the following
procedures for indemnification claims based upon or arising out of any claim,
action or proceeding by any person not a party to this Agreement:

               11.4.1  If at any time a claim shall be made or threatened, or an
     action or proceeding shall be commenced or threatened, against a party
     hereto (the "Aggrieved Party") which could result in liability of the other
     party (the "Indemnifying Party") under its indemnification obligations
     hereunder, the Aggrieved Party shall give to the Indemnifying Party prompt
     notice of such claim, action or proceeding.  Such notice shall state the
     basis for the claim, action or proceeding and the amount thereof (to the
     extent

                                      13
<PAGE>

     such amount is determinable at the time when such notice is given) and
     shall permit the Indemnifying Party to assume the defense of any such
     claim, action or proceeding (including any action or proceeding resulting
     from any such claim). Failure by the Indemnifying Party to notify the
     Aggrieved Party of its election to defend any such claim, action or
     proceeding within a reasonable time, but in no event more than fifteen days
     after notice thereof shall have been given to the Indemnifying Party, shall
     be deemed a waiver by the Indemnifying Party of its right to defend such
     claim, action or proceeding; provided, however, that the Indemnifying Party
     shall not be deemed to have waived its right to contest and defend against
     any claim of the Aggrieved Party for indemnification hereunder based upon
     or arising out of such claim, action or proceeding.

               11.4.2  If the Indemnifying Party assumes the defense of any such
     claim, action or proceeding, the obligation of the Indemnifying Party as to
     such claim, action or proceeding shall be limited to taking all steps
     necessary in the defense or settlement thereof and, provided the
     Indemnifying Party is held to be liable for indemnification hereunder, to
     holding the Aggrieved Party harmless from and against any and all losses,
     damages and liabilities caused by or arising out of any settlement approved
     by the Indemnifying Party or any judgment or award rendered in connection
     with such claim, action or proceeding.  The Aggrieved Party may
     participate, at its expense, in the defense of such claim, action or
     proceeding provided that the Indemnifying Party shall direct and control
     the defense of such claim, action or proceeding.  The Aggrieved Party
     agrees to cooperate and make available to the Indemnified Party all books
     and records and such officers, employees and agents as are reasonably
     necessary and useful in connection with the defense.  The Indemnifying
     Party shall not, in the defense of such claim, action or proceeding,
     consent to the entry of any judgment or award, or enter into any
     settlement, except in either event with the prior consent of the Aggrieved
     Party, which does not include as an unconditional term thereof the giving
     by the claimant or the plaintiff to the Aggrieved Party of a release from
     all liability in respect of such claim, action or proceeding.

               11.4.3  If the Indemnifying Party does not assume the defense of
     any such claim, action or proceeding, the Aggrieved Party may defend
     against such claim, action or proceeding in such manner as it may deem
     appropriate, provided that such claim shall not be compromised without the
     written consent of the Indemnifying Party, which consent shall not be
     unreasonably withheld.  The Indemnifying Party agrees to cooperate and make
     available to the Aggrieved Party all books and records and such officers,
     employees and agents as are reasonably necessary and useful in connection
     with the defense.  The Aggrieved Party shall keep the Indemnifying Party
     reasonably informed of the progress of any such defense, compromise or
     settlement.  The Indemnifying Party shall be liable for any settlement of
     any third party claim effected pursuant to and in accordance with this
     Section 11.4.3 and for any final judgment (subject to any right of appeal)
     and the Indemnifying Party agrees to indemnify and hold harmless the
     Aggrieved Party from and against any and all Damages by reason of such
     settlement or judgment.

               11.4.4  In the event an Aggrieved Party or Indemnifying Party
     shall cooperate in the defense or make available books, records, officers,
     employees or agents, as required by the terms of Sections 11.4.2 and
     11.4.3, the party to which such

                                      14
<PAGE>

     cooperation is provided shall pay the out-of-pocket costs and expenses
     (including legal fees and disbursements) of the party providing such
     cooperation and of its officers, employees and agents reasonably incurred
     in connection with providing such cooperation, but shall not be responsible
     to reimburse the party providing such cooperation for such party's time or
     the salaries or costs of fringe benefits or other similar expenses paid by
     the party providing such cooperation to its officers and employees in
     connection therewith.

               11.4.5   To the extent that any claim for indemnification
     hereunder is covered by insurance held by the Aggrieved Party, such
     Aggrieved Party shall be entitled to indemnification pursuant to this
     Section 11 only with respect to the amount of Damages that are in excess of
     the cash proceeds received by such Aggrieved Party pursuant to such
     insurance.  If such Aggrieved Party receives such cash insurance proceeds
     prior to the time such claim is paid, then the amount payable by the
     Indemnifying Party pursuant to such claim shall be reduced by the amount of
     such insurance proceeds.  If such Aggrieved Party receives such cash
     insurance proceeds after such claim is paid, then upon receipt by the
     Aggrieved Party of any cash proceeds pursuant to such insurance up to the
     amount of the Damages incurred by such Aggrieved Party with respect to such
     claim, such Aggrieved Party shall repay any portion of such amount which
     was previously paid by the Indemnifying Party to the Indemnified Party in
     satisfaction of such claim.

          11.5 Limitations on Amount--SSC.
               --------------------------

               11.5.1   Subject to Section 11.5.3, SSC will have no liability
     (for indemnification or otherwise) for Damages with respect to the matters
     described in Section 11.2.1 in excess of the amount of the Purchase Price.

               11.5.2   Subject to Section 11.5.3, SSC will have no liability
     (for indemnification or otherwise) with respect to the matters described in
     Section 11.2.1 until the total of all Damages with respect to all such
     matters exceeds the amount of $25,000, and then only to the extent of such
     excess.

               11.5.3   Notwithstanding the provisions of Sections 11.5.1 and
     11.5.2, the limitations set forth in this Section 11.5 will not apply to
     any breach of the representations or warranties in Sections 5.1, 5.2, 5.4
     or 7.4.4.4.

          11.6 Limitations on Amount--UPI
               --------------------------

               11.6.1   Subject to Section 11.6.3, UPI will have no liability
     (for indemnification or otherwise) for Damages with respect to the matters
     described in Section 11.3.1 in excess of the amount of the Purchase Price.

               11.6.2   Subject to Section 11.6.3, UPI will have no liability
     for indemnification or otherwise) with respect to the matters described in
     Section 11.3.1 until the total of all Damages with respect to all such
     matters exceeds the amount of $25,000, and then only to the extent of such
     excess.

                                      15
<PAGE>

               11.6.3  Notwithstanding the provisions of Sections 11.6.1 and
     11.6.2, the limitations set forth in this Section 11.6 will not apply to
     any breach of the representations or warranties in Sections 6.1 or 6.2.

     12.  General Provisions.
          ------------------

          12.1 Public Announcements.  Any public announcement or similar
               --------------------
publicity with respect to this Agreement, the SSC Related Documents, the UPI
Related Documents or the transactions contemplated hereunder or thereunder will
be issued, if at all, at such time and in such manner as SSC and UPI may jointly
determine.  Unless consented to by the other party in advance or required by
applicable law, prior to the Closing UPI and SSC shall keep this Agreement, the
SSC Related Documents, the UPI Related Documents or the transactions
contemplated hereunder or thereunder strictly confidential and may not make any
disclosure of such matters to any person or entity.  SSC and UPI will consult
with each other concerning the means by which the affected members, employees,
customers, and suppliers of SSC will be informed thereof, and UPI will have the
right to be present for any such communication.

          12.2 Assurance of Further Action.  From time to time after the
               ---------------------------
Closing, and without further consideration from the other party, and at the
requesting party's expense, each party shall execute and deliver, or cause to be
executed and delivered, to the other party such further instruments of sale,
conveyance, assignment, transfer and delivery and take such other action as the
other party may reasonably request in order to more effectively sell, convey,
assign, transfer and deliver and reduce to the possession of UPI any and all of
the Assets and to consummate the transactions contemplated under this Agreement,
under the SSC Related Documents or under the UPI Related Documents.

          All payments and reimbursements made by any third party in the name of
or to SSC or any affiliate of SSC in connection with or arising out of the
Assets or the Leased Livestock Marketing Facilities after the Closing shall be
held by SSC or such affiliate in trust for the benefit of UPI and, immediately
upon receipt by SSC or any such affiliate of any such payment or reimbursement,
SSC shall pay, or cause to be paid, over to UPI the amount of such payment or
reimbursement without right of set off.

          12.3 Expenses.  Unless otherwise provided elsewhere in this Agreement
               --------
or in any other agreement entered into in connection with the transactions
contemplated by this Agreement, each of the parties will pay all of its own
legal and accounting fees and other expenses incurred in the preparation and
negotiation of this Agreement and the performance of the terms and provisions of
this Agreement, the SSC Related Documents and the UPI Related Documents.

          12.4 Notices. All notices, consents, waivers, and other communications
               -------
under this Agreement must be in writing and will be deemed to have been duly
given when (i) delivered by hand (with written confirmation of receipt), (ii)
sent by telecopier (with written confirmation of receipt), provided that a copy
is mailed by registered mail, return receipt requested, or (iii) when received
by the addressee, if sent by a nationally recognized overnight delivery service
(receipt requested), in each case to the appropriate addresses and telecopier

                                      16
<PAGE>

numbers set forth below (or to such other addresses and telecopier numbers as a
party may designate by notice to the other parties):

          If to UPI, to:

               United Producers, Inc.
               5909 Cleveland Avenue
               P.O. Box 29800
               Columbus, Ohio 43229
               Attention: Dennis Bolling, President and Chief Executive Officer
               Telecopier Number: (614) 890-4776

               With a copy to:

               Russell R. Rosler, Esq.
               Vorys, Sater, Seymour and Pease LLP
               52 East Gay Street
               Columbus, Ohio 43215
               Telecopier Number: (614) 719-4931

          If to SSC, to:

               Southern States Cooperative, Inc.
               6606 West Broad Street
               Richmond, Virginia 23260
               Attention: N. Hopper Ancarrow, Jr., Esq.
               Telecopier Number: (804) 281-1383

               With a copy to:

               Elizabeth G. Hester, Esq.
               Troutman Sanders Mays & Valentine LLP
               1111 East Main Street
               Richmond, Virginia 23218-1122
               Telecopier Number: (804) 697-1339

          12.5 Rights Under this Agreement: Nonassignability.  This Agreement,
               ---------------------------------------------
the SSC Related Documents and the UPI Related Documents shall bind and inure to
the benefit of the parties hereto and thereto and their respective successors
and assigns, but shall not be assignable by any party without the prior written
consent of the other parties.  Nothing contained in this Agreement, the SSC
Related Documents or the UPI Related Documents is intended to confer upon any
person, other than the parties to this Agreement and their respective successors
and assigns, any rights, remedies, obligations or liabilities under or by reason
of this Agreement, the SSC Related Documents or the UPI Related Documents.

          12.6 Entire Agreement and Modification.  This Agreement supersedes all
               ---------------------------------
prior agreements between the parties with respect to its subject matter and
constitutes (along with the

                                      17
<PAGE>

documents referred to in this Agreement) a complete and exclusive statement of
the terms of the agreement between the parties with respect to its subject
matter. This Agreement may not be amended except by a written agreement executed
by the party to be charged with the amendment. Notwithstanding the foregoing,
however, the confidentiality agreement executed by and between SSC and UPI prior
to the date hereof shall survive execution of this Agreement and remain in full
force and effect in accordance with their respective terms.

        12.7   Schedules.  The disclosures in the Schedules must relate only to
               ---------
the representations and warranties in the Section of the Agreement to which they
expressly relate and not to any other representation or warranty in this
Agreement.

        12.8   Governing Law.  This Agreement shall be governed by and construed
               -------------
in accordance with the laws of the State of Virginia.

        12.9   Knowledge.  As used in this Agreement, the phrase "to the
               ---------
knowledge" of SSC shall refer only to the actual knowledge of K. Gene McClung,
N. Hopper Ancarrow, Jr., Ray Ramsey, David Trimmer or Jerry Walker.

        12.10  Headings: References to Sections, Exhibits and Schedules.  The
               --------------------------------------------------------
headings of the Sections, Paragraphs and Subparagraphs of this Agreement are
solely for convenience and reference and shall not limit or otherwise affect the
meaning of any of the terms or provisions of this Agreement.  The references
herein to Sections, Exhibits and Schedules, unless otherwise indicated, are
references to Sections of and Exhibits and Schedules to this Agreement.

        12.11  Counterparts.  This Agreement may be executed in any number of
               ------------
counterparts, each of which shall be an original, but which together constitute
one and the same instrument.

                                      18
<PAGE>

          IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed by their duly authorized officers, effective as of the day and year set
forth above.

UNITED PRODUCERS, INC.           SOUTHERN STATES COOPERATIVE, INC.

By:   /s/ Dennis Bolling           By:  /s/ K. Gene McClung
    --------------------              ----------------------
    Dennis Bolling, President      Printed Name: K. Gene McClung
    and Chief Executive Officer    Title: Group Vice President

                                      19
<PAGE>

                        LOCATION LIST OF DEFINED TERMS
                                      IN
                               MASTER AGREEMENT
                                    BETWEEN
                            UNITED PRODUCERS, INC.
                                      AND
                       SOUTHERN STATES COOPERATIVE, INC.

<TABLE>
<CAPTION>
Term                                                        Location of Definition
----                                                        ----------------------
<S>                                                         <C>

Act.......................................................  Section 7.4.4
Agreed Cash Amount........................................  Section 2.1
Agreed Value of the Inventory Items.......................  Section 2.2
Agreed Value of the Tangible Personal Property............  Section 2.2
Agreement.................................................  Preamble
Aggrieved Party...........................................  Section 11.4.1
Assets....................................................  Section 1
Assigned Contracts........................................  Section 1.6
Assignment and Assumption Agreement.......................  Section 4.1.4
Assumed Liabilities.......................................  Section 2.3
Capital Stock.............................................  Section 7.4.4
Closing...................................................  Section 3
Closing Date..............................................  Section 3
Contract..................................................  Section 1.6
Damages...................................................  Section 11.2
Effective Time............................................  Section 3
Indemnifying Party........................................  Section 11.4.1
Intellectual Property.....................................  Section 1.3
Inventory Items...........................................  Section 1.4
Leased Livestock Marketing Facilities.....................  Section 1.5
Leases....................................................  Section 4.1.7
LLC.......................................................  Section 1.2
LLC Membership Interest...................................  Section 1.2
LLC Operating Agreement...................................  Section 5.5
Marketing Agreement.......................................  Section 4.1.6
Memorandum of Lease Documents.............................  Section 4.1.7
Memorandum of Right of First Refusal Agreement Documents..  Section 4.1.8
MLCC......................................................  Section 7.4.1
Offer.....................................................  Section 7.1.1
Offer Date................................................  Section 7.1.1
Offered Property..........................................  Section 7.1.1
Offering Price............................................  Section 7.1.1
Offering Terms............................................  Section 7.1.1
Offeror...................................................  Section 7.1.1
PCC.......................................................  Section 7.4.1
</TABLE>

                                      20
<PAGE>

<TABLE>
<S>                                                         <C>
Purchase Price............................................  Section 2.1
Records...................................................  Section 1.1
Specified Non-Leased Properties...........................  Section 4.1.8
Specified Post-Closing Transactions.......................  Section 7.4
SSC.......................................................  Preamble
SSC Related Documents.....................................  Section 4.1
Tangible Personal Property................................  Section 1.5
to the knowledge..........................................  Section 12.9
UPI.......................................................  Preamble
UPI Equity Credits........................................  Section 7.4.4
UPI Related Documents.....................................  Section 4.2
</TABLE>

                                      21
<PAGE>

                        LIST OF EXHIBITS AND SCHEDULES
                                      TO
                               MASTER AGREEMENT
                                    BETWEEN
                            UNITED PRODUCERS, INC.
                                      AND
                       SOUTHERN STATES COOPERATIVE, INC.

Exhibits            Description
--------            -----------

Exhibit 1.2         LLC Membership Interest
Exhibit 1.3         Intellectual Property
Exhibit 1.4         Inventory Items
Exhibit 1.5A        Leased Livestock Marketing Facilities
Exhibit 1.5B        Tangible Personal Property
Exhibit 1.6         Assigned Contracts
Exhibit 2.4         Allocation of Purchase Price
Exhibit 4.1.1       Form of General Instrument of Sale
Exhibit 4.1.3       Form of Assignment of Membership Interest in Limited
                    Liability Company
Exhibit 4.1.4       Form of Assignment and Assumption Agreement in Respect of
                    Assumed Liabilities
Exhibit 4.1.6       Form of Marketing Agreement
Exhibit 4.1.7A      Form of Leases
Exhibit 4.1.7B      Form of Memorandum of Lease Documents
Exhibit 4.1.8A      Specified Non-Leased Properties
Exhibit 4.1.8B      Form of Memorandum of Right of First Refusal Agreement
                    Documents
Exhibit 4.1.9       Form of SSC's Secretary's Certificate
Exhibit 4.2.2       Form of UPI's Secretary's Certificate
Exhibit 7.4.1       Term Sheet for Loan Purchase Transaction
Exhibit 7.4.3       Term Sheet for Loan Transaction
Exhibit 7.4.4.3     Capital Stock
Exhibit 9.2         Form of Opinion of Vorys, Sater, Seymour and Pease LLP
Exhibit 10.2        Form of Opinion of Troutman Sanders Mays & Valentine LLP

Schedules           Description
---------           -----------

Schedule 5.3        No Violation--SSC
Schedule 5.4        Title to Assets
Schedule 5.6        Contracts
Schedule 5.6A       Form of Bull Lease
Schedule 5.7        Litigation
Schedule 6.3        No Violation--UPI

                                      22

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00031-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00031-of-00352.parquet"}]]