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                                                                    EXHIBIT 10.1

                                 FIRST AMENDMENT
                              TO AGREEMENT BETWEEN
                            OWNER AND DESIGN BUILDER

     This First Amendment to Agreement Between Owner and Design Builder ("First
Amendment"), is made this 8th day of June, 2001, by and between Northern Lights
Ethanol, LLC ("Owner"), and Broin and Associates, Inc. ("Design Builder").

                                 R E C I T A L S

     A. Design Builder and Northern Growers Cooperative made, executed and
delivered each to the other an Agreement Between Owner and Design Builder dated
November 2, 2000, for construction of a 40-million gallon per year dry mill fuel
ethanol processing plant to be located in Grant County, South Dakota.

     B.   Northern Growers Cooperative assigned to Northern Lights Ethanol, LLC,
all of its right, title and interest in and to the Agreement Between Owner and
Design Builder.

     C. The parties desire to amend the terms and conditions of the Agreement
Between Owner and Design Builder in accordance with the provisions of this First
Amendment.

     NOW, THEREFORE, the parties agree that the Agreement Between Owner and
Design Builder is amended as follows (paragraph numbers correspond to those
contained in the Agreement Between Owner and Design Builder):

     1.   Paragraph 7.2.2.1: Deleted in its entirety.

     2.   Paragraph 7.2.2.5: This Paragraph is amended to read as follows:

          Contain a provision or endorsement that the coverage afforded will not
          be canceled until at least 30 days' prior written notice has been
          given to Owner and each other additional insured indicated in Article
          14 to whom a Certificate of Insurance has been issued (and the
          Certificates of Insurance furnished by the Design Builder pursuant to
          Paragraph 7.9.2 will so provide);

     3.   Paragraph 7.2.3: This Paragraph is added to the Agreement to read as
          follows:

          Design Builder's insurance agency shall agree in writing to give to
          Owner notice of cancellation of insurance by either party.

     4.   Paragraph 7.4.2: Deleted in its entirety.

     5.   Paragraph 7.4.3: This Paragraph is amended to read as follows:

          All the policies of insurance (and the certificates or other evidence
          thereof) required to be purchased and maintained by Owner in
          accordance with Paragraph

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          7.4 will contain a provision or endorsement that the coverage afforded
          will not be canceled until at least 30 days' prior written notice has
          been given to Design Builder and to each other additional insured to
          whom a Certificate of Insurance has been issued and will contain
          waiver provisions in accordance with Paragraph 7.5.1. In addition, the
          insurance agency representing the Owner shall agree in writing to give
          to Design Builder notice of cancellation by either party.

     5.   All of the terms and conditions of the Agreement Between Owner and
          Design Builder shall remain in full force and effect except to the
          extent modified herein.

                                             BROIN AND ASSOCIATES, INC.

                                             By:   /S/  Robert Broin
                                                --------------------------------
                                             Its President

                                             NORTHERN LIGHTS ETHANOL, LLC

                                             By:   /S/  Del Strasser
                                                --------------------------------
                                             Its Chairman

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                                AGREEMENT BETWEEN

                            OWNER AND DESIGN BUILDER

THIS AGREEMENT

made as of this 2nd day of November in the year of 2000.

BETWEEN the Owner:

Northern Growers Cooperative
P.O. Box 225
Milbank, SD 57252

And the Design Builder:

BROIN AND ASSOCIATES. INC.
2209 EAST 57TH STREET NORTH
SIOUX FALLS, SD 57104

For the following Project:
(INCLUDE PROJECT NAME, LOCATION AND A SUMMARY DESCRIPTION)

Northern Growers Cooperative located in Milbank, SD. The construction of a 40
MMGPY dry mill fuel ethanol processing plant

The Owner and Design Builder, in consideration of the mutual covenants
hereinafter set forth, agree as follows:

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ARTICLE 1  - GENERAL PROVISIONS

1.1       BASIC DEFINITIONS

          1.1.1 The Contract Documents consist this Agreement, the Design
          Builder's Exhibits and written addenda identified in Article 14, the
          Construction Documents approved by the Owner and Modifications issued
          after execution of this Agreement. A Modification is a Change Order or
          a written amendment to this Agreement signed by both parties, or a
          Construction Change Directive issued by the Owner in accordance with
          Paragraph 8.3.

          1.1.2 The term "Work" means the construction and services provided by
          the Design Builder to fulfill the Design Builder's obligations.

1.2       EXECUTIONS, CORRELATION AND INTENT

          1.2.1 It is the intent of the Owner and Design Builder that the
          Contract Documents include all items necessary for proper execution
          and completion of the Work. The Contract Documents are complementary,
          and what is required by one shall be as binding as if required by all;
          performance by the Design Builder shall be required only to the extent
          consisted with and reasonably inferable from the Contract Documents as
          being necessary to produce the intended results. Words that have
          well-known technical or construction industry meanings are used in the
          Contract Documents in accordance with such recognized meanings.

          1.2.2 If the Design Builder believes or is advised by another design
          professional retained by the Design. Builder to provide services on
          the Project that implementation of any instruction received from the
          Owner would cause a violation of any applicable law, the Design
          Builder shall notify the Owner in writing. Neither the Design Builder
          nor another design professional retained by the Design Builder shall
          be obligated to perform any act which either believes will violate any
          applicable law.

          1.2.3 Nothing contained in this Agreement shall create a contractual
          relationship between the Owner and any person or entity other than the
          Design Builder.

1.3       OWNERSHIP AND USE OF DOCUMENTS

          1.3.1 Drawings, specifications, and other documents and electronic
          date furnished by the Design Builder and other design professional
          retained by the Design Builder, are instruments of service. The Design
          Builder and other providers of professional services shall retain all
          common law, statutory and other reserved rights, including copyright
          in those instruments of service furnished by them. Drawings,
          specifications, and other documents and electronic data are furnished
          for use solely with respect to this Agreement. The Owner shall be
          permitted to retain copies, including reproducible copies, of the
          drawings, specifications, and other documents and electronic data
          furnished by the Design Builder for information and reference in
          connection with the Project except as provided in Subparagraphs 1.3.2
          and 1.3.3.

          1.3.2 Drawings, specifications, and other documents and electronic
          data furnished by the Design Builder shall not be used by the Owner or
          others on other projects, for additions to this Project or for
          completion of this Project by others, except by agreement in writing
          and with appropriate compensation to the Design Builder.

          1.3.3 Submission or distribution of the Design Builder's documents to
          meet official regulatory requirements or for similar purposes in
          connection with the Project is not to be construed as publication in
          derogation of the rights reserved in Subparagraph 1.3.1.

ARTICLE 2  - OWNER

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2.1       The Owner shall designate a representative authorized to act on the
          Owner's behalf with respect to the Project. The Owner or such
          authorized representative shall examine documents submitted by the
          Design Builder and shall render decisions in a timely manner and in
          accordance with the schedule accepted by the Owner. The Owner may
          obtain independent review of the Contract Documents by a separate
          architect, engineer, contractor, or cost estimator under contract to
          or employed by the Owner. Such independent review shall be undertaken
          at the Owner's expense in a timely manner and shall not delay the
          orderly progress of the Work.

2.2       The Owner shall cooperate with the Design Builder in securing building
          and other permits, licenses and inspections. The Owner shall not be
          required to pay the fees for such permits, licenses and inspections
          unless the cost of such fees is excluded from the Design Builder's
          Scope of Services.

2.3       The Owner shall furnish services of land surveyors, geotechnical
          engineers, and other consultants for subsoil, air and water
          conditions, when such services are deemed necessary by the Design
          Builder to properly carry out the design services required by this
          Agreement.

2.4       The Owner shall disclose, to the extent known to the Owner, the
          results and reports of prior tests, inspections or investigations
          conducted for the Project involving: structural or mechanical systems;
          chemical; air and water pollution; hazardous materials; or other
          environmental and subsurface conditions. The Owner shall disclose all
          information known to the Owner regarding the presence of pollutants at
          the Project's site.

2.5       The Owner shall furnish all legal, accounting and insurance counseling
          services as may be necessary at any time for the Project, including
          such auditing services as the Owner may require to verify the Design
          Builder's Applications for Payment.

2.6       Those services, information, surveys and reports required by
          Paragraphs 2.3 through 2.5 which are within the Owner's control shall
          be furnished at the Owner's expense. The Design Builder shall be
          entitled to rely upon the accuracy and completeness thereof, except to
          the extent the Owner advises the Design Builder to the contrary in
          writing.

2.7       If the Owner requires the Design Builder to maintain any special
          insurance coverage, policy, amendment, or rider, the Owner shall pay
          the additional cost thereof, except as otherwise stipulated in this
          Agreement.

2.8       If the Owner observes or otherwise becomes aware of a fault of defect
          in the Work or nonconformity with the Design Builder's Scope of
          Services or the Construction Documents, the Owner shall give prompt
          written notice thereof to the Design Builder.

2.9       The Owner shall promptly upon the request of the Design Builder,
          furnish to the Design Builder reasonable evidence that financial
          arrangements have been made to fulfill the Owner's obligations under
          the Contract.

2.10      The Owner shall communicate with persons or entities employed or
          retained by the Design Builder through the Design Builder, unless
          otherwise directed by the Design Builder.

ARTICLE 3 - DESIGN BUILDER

3.1       SERVICES AND RESPONSIBILITIES

          3.1.1 Standard of Care: Design Builder shall perform or furnish Design
          Professional Services and related services in all phases of the
          project. The standard of care for all such services performed or
          furnished under this Agreement will be the care and skill ordinarily
          used by

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          members of the engineering profession practicing under similar
          conditions at the same time and locality.

          3.1.2 The Design Builder shall be responsible to the Owner for acts
          and omissions of the Design Builder's employees, subcontractors and
          their agents and employees, and other persons, including other design
          professionals, performing any portion of the Design Builder's
          obligations under this Agreement.

3.2       BASIC SERVICES

          3.2.1 The Design Builder's Basic Services are described below and in
          Article 14.

          3.2.2 The Design Builder shall designate a representative authorized
          to act on the Design Builder's behalf with respect to the Project.

          3.2.3 The Design Builder, with the assistance of the Owner, shall file
          documents required to obtain necessary approvals of governmental
          authorities having jurisdiction over the Project.

          3.2.4 Unless otherwise provided in the Contract Documents, the Design
          Builder shall provide or cause to be provided and shall pay for design
          services, labor, materials, equipment, tools, construction equipment
          and machinery, water, heat, utilities, transportation and other
          facilities and services necessary for proper execution and completion
          of the Work, whether temporary or permanent and whether or not
          incorporated or to be incorporated in the Work.

          3.2.5 Design Builder shall supervise, inspect and direct the
          Construction competently and efficiently, devoting such attention
          thereto and applying such skills and expertise as may be necessary to
          provide the Construction in accordance with the Contract Documents.
          Design Builder shall be solely responsible for the means, methods,
          techniques, sequences and procedures employed for the provision of
          Construction. Design Builder shall be responsible to see that the
          complete Construction complies accurately with the Contract Documents
          and shall keep Owner advised as to the quality and progress of the
          Construction.

          3.2.6 The Design Builder shall keep the Owner informed of the progress
          and quality of the Work.

          3.2.7 The Design Builder shall be responsible for correcting Work
          which does not conform to the Contract Documents.

          3.2.8 The Design Builder warrants to the Owner that materials and
          equipment furnished under the Contract will be of good quality and new
          unless otherwise required or permitted by the Contract Documents, that
          the construction will be free from faults and defects, and that the
          construction will conform with the requirements of the Contract
          Documents. Construction not conforming to these requirements,
          including substitutions not properly approved by the Owner, shall be
          corrected in accordance with Article 9.

          3.2.9 The Design Builder shall pay all state sales, consumer, use and
          similar taxes which had been legally enacted prior to the date of this
          Agreement, and shall secure and pay for building and other permits and
          governmental fees, licenses and inspections necessary for the proper
          execution and completion of the Work which are either customarily
          secured after execution of a contract for construction or are legally
          required prior to the date of this Agreement.

          3.2.10   Laws and Regulations

                   .1 Design Builder shall give all notices and comply with all
                   Laws and Regulations of the place of the Project which are
                   applicable to furnishing and performance of the Work. Except
                   where otherwise expressly required by applicable Laws and
                   Regulations, Owner

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                   shall not be responsible for monitoring Design Builder's
                   compliance with any Laws or Regulations.

                   .2 If Design Builder performs any Work knowing or having
                   reason to know that it is contrary to Laws or Regulations,
                   Design Builder shall bear all costs arising therefrom.

                   .3 Changes in Laws and Regulations not known or foreseeable
                   on the date of receipt of Proposals having an effect on the
                   cost or time of performance may be the subject of a claim
                   under Article 8.

          3.2.11 Design Builder shall pay all license fees and royalties and
          assume all costs incident to the use in the performance of the Work or
          the incorporation in the Work of any invention, design, process,
          product or device which is subject of patent rights or copyrights held
          by others. If a particular invention, design, process, product or
          device is specified in the Conceptual Documents for use in the
          performance of the Construction and if to the actual knowledge of
          Owner its use is subject to patent rights or copyrights calling for
          the payment of any license fee or royalty to others, the existence of
          such rights shall be disclosed by Owner in the Conceptual Documents.
          To the fullest extent permitted by Laws and Regulations, Design
          Builder shall indemnify and hold harmless Owner, from and against all
          claims, costs, losses and damages (including but not limited to all
          fees and charges of engineers, architects, attorneys and other
          professionals and all court or arbitration or other dispute resolution
          costs) arising out of or resulting from any infringement of patent
          rights or copyrights incident to the use in the performance of the
          Work or resulting from the incorporation in the Work of any invention,
          design, process, product or device not specified in the Conceptual
          Documents.

          3.2.12   Use of Site and Other Areas

                   .1 Design Builder shall confine construction equipment, the
                   storage of materials and equipment and the operations of
                   construction workers to those lands and areas permitted by
                   the Owner and other land and areas permitted by Laws and
                   Regulations, rights-of-way, permits and easements, and shall
                   not unreasonably encumber the premises with construction
                   equipment or other materials or equipment. Design Builder
                   shall assume full responsibility for any damage to any such
                   land or area, or to the owner or occupant thereof or of any
                   adjacent land or areas, resulting from the performance of the
                   Construction. Should any claim be made by any such owner or
                   occupant because of the performance of the Construction,
                   Design Builder shall promptly settle with such other party by
                   negotiation or otherwise resolve the claim by arbitration or
                   other dispute resolution proceeding or at law. Design Builder
                   shall, to the fullest extent permitted by Laws and
                   Regulations, indemnify and hold harmless Owner, Owner's
                   Consultants and anyone directly or indirectly employed by any
                   of them from and against all claims, costs, losses and
                   damages (including, but not limited to, fees of engineers,
                   architects, attorneys and other professionals and court and
                   arbitration or other dispute resolution costs) arising out of
                   or resulting from any claim or action, legal or equitable,
                   brought by any such owner or occupant against Owner, or any
                   other party indemnified hereunder to the extent caused by or
                   based upon Design Builder's performance of the Construction.

                   .2 During the performance of the Construction, Design Builder
                   shall keep the premises free from accumulations of waste
                   materials, rubbish and other debris resulting from the
                   Construction. At the completion of the Construction Design
                   Builder shall remove all waste materials, rubbish and debris
                   from and about the premises as well as all tools, appliances,
                   construction equipment, temporary construction and machinery
                   and surplus materials. Design Builder shall leave the Site
                   clean and ready for occupancy by Owner at Substantial
                   Completion. Design Builder shall restore to original
                   condition all property not designated for alteration by the
                   Contract Documents.

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                   .3 Design Builder shall not load nor permit any part of any
                   structure to be loaded in any manner that will endanger the
                   structure, nor shall Design Builder subject any part of the
                   Work or adjacent property to stresses or pressures that will
                   endanger it.

          3.2.13 The Design Builder shall notify the Owner when the Design
          Builder believes that the Work or an agreed upon portion thereof is
          substantially completed. If the Owner concurs, the Design Builder
          shall issue a Certificate of Substantial Completion which shall
          establish the Date of Substantial Completion, shall state the
          responsibility of each party for security, maintenance, heat,
          utilities, damage to the Work and insurance, shall include a list of
          items to be completed or corrected and shall fix the time within which
          the Design Builder shall complete items listed therein. Disputes
          between the Owner and Design Builder regarding the Certificate of
          Substantial Completion shall be resolved in accordance with provisions
          of Article 10.

          3.2.14 The Design Builder shall maintain at the site for the Owner one
          record copy of the drawings, specifications, product data, samples,
          shop drawings, Change Orders and other modifications, in good order
          and regularly updated to record the completed construction. These
          shall be delivered to the Owner upon completion of construction and
          prior to final payment.

          3.2.15 Unless otherwise provided in the Contract Documents, Design
          Builder shall directly or through one or more Subcontractors obtain
          and pay for all permits and licenses necessary for construction. Owner
          shall assist Design Builder, when necessary, in obtaining such permits
          and licenses. Design Builder shall pay all governmental charges and
          inspection fees necessary for the prosecution of the Construction,
          which are applicable on the date of this Agreement. The Owner is
          responsible for paying any and all utility company connection charges
          and/or capital costs related thereto.

          3.2.16   Design Builder's General Warranty and Guarantee

                   .1 Design Builder warrants and guarantees to Owner that all
                   Construction will be in accordance with the Contract
                   Documents and will not be defective. This warranty shall be
                   effective for a period of twelve months from the date of
                   substantial completion and will cover all labor and materials
                   to correct any deficiencies. Design Builder's warranty and
                   guarantee hereunder excludes defects or damage caused by:

                            a.   Abuse, modification or improper maintenance or
                                 operation by persons other than Design/Builder,
                                 Subcontractors or Suppliers; or

                            b.   Normal wear and tear under normal usage.

                   .2 Design Builder's obligation to perform and complete the
                   Work in accordance with the Contract Documents shall be
                   absolute. None of the following will constitute an acceptance
                   of Work that is not in accordance with the Contract Documents
                   or a release of Design Builder's obligation to perform the
                   Work in accordance with the Contract Documents:

                            a.   Observations by Owner:

                            b.   The making of any progress or final payment;

                            c.   The issuance of a certificate of Substantial
                                   Completion;

                            d.   Use or occupancy of the Work or any part
                                thereof by Owner;

                            e.   Any acceptance by Owner or any failure to do
                                 so;

                            f.   Any review and approval of a Submittal;

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                            g.   Any inspection, test or approval by others; or

                            h.   Any correction of defective Construction by
                                 Owner

          3.2.17   OPERATIONAL PHASE: During the Operations Phase, Design
          Builder shall:

                   .1       Provide assistance in connection with the start-up,
                   testing, refining and adjusting of any equipment or system.

                   .2       Assist Owner in training staff to operate and
                   maintain the Project.

                   .3       Assist Owner in developing systems and procedures
                   for control of the operation and maintenance of and record
                   keeping for the Project.

3.3       ADDITIONAL SERVICES

          3.3.1 The services described in this Paragraph 3.3 are not included in
          Basic Services unless so identified in Article 14, and they shall be
          paid for by the Owner as provided in this Agreement, in addition to
          the compensation for Basic Services. The services described in this
          Paragraph 3.3 shall be provided only if authorized or confirmed in
          writing by the Owner.

          3.3.2 Making revisions in drawings, specifications, and other
          documents or electronic data when such revisions are required by the
          enactment or revision of codes, laws or regulations subsequent to the
          preparation of such documents or electronic data.

          3.3.3 Providing consultation concerning replacement of Work damaged by
          fire or other cause during construction, and furnishing services
          required in connection with the replacement of such Work.

          3.3.4 Providing services in connection with a public hearing,
          arbitration proceeding or legal proceeding, except where the Design
          Builder is a party thereto.

          3.3.5 Providing coordination of construction performed by the Owner's
          own forces or separate contractors employed by the Owner, and
          coordination of services required in connection with construction
          performed and equipment supplied by Owner.

          3.3.6 Submitting Construction Documents for review and approval by the
          Owner. Construction Documents may include drawings, specifications,
          and other documents and electronic data setting forth in detail the
          requirements for construction of the Work.

          3.3.7 Preparing a set of reproducible record documents or electronic
          data showing significant changes in the Work made during construction.

          3.3.8 Providing additional assistance for training personnel,
          preparing manuals or consulting during operation outside of the Scope
          of Basic Services.

ARTICLE 4 - TIME

          4.1 Unless otherwise indicated, the Owner and the Design Builder shall
          perform their respective obligations as expeditiously as is consistent
          with reasonable skill and care and the orderly progress of the
          Project.

          4.2      Time limits stated in the Contract Documents are of the
          essence. The Work to be performed under this Agreement shall commence
          upon receipt of a Notice To Proceed unless

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          otherwise agreed and, subject to authorized Modifications, Substantial
          Completion shall be achieved on or before the date established in
          Article 14.

          4.3 Substantial Completion is the stage in the progress of the Work
          when the Work or designated portion thereof is sufficiently complete
          in accordance with the Contract Documents so the Owner can occupy or
          utilize the Work for its intended use.

          4.4 Based on the Design Builder's Scope of Services, a construction
          schedule shall be provided consistent with Paragraph 4.2 above.

          4.5 If the Design Builder is delayed at any time in the progress of
          the Work by an act or neglect of the Owner, Owner's employees, or
          separate contractors employed by the Owner, or by changes ordered in
          the Work, or by labor disputes, fire, unusual delay in deliveries,
          adverse weather conditions not reasonably anticipatable, unavoidable
          casualties or other causes beyond the Design Builder's control, or by
          delay authorized by the Owner pending arbitration, or by other causes
          which the Owner and Design Builder agree may justify delay, then
          Contract Time shall be reasonably extended by Change Order.

ARTICLE 5 - PAYMENTS

5.1       PROGRESS PAYMENTS

          5.1.1 The Design Builder shall deliver to the Owner itemized
          Applications for Payment in such detail as indicated in Article 14.

                   5.1.1.1 Application Shall be made on AlA forms G702 and G703
          or similar documents. Two percent retainage shall be held by the owner
          on up to fifty percent value of the completed work after which no
          retainage will be held.

          5.1.2 Within ten (10) days of the Owners receipt of a properly
          submitted and correct Application for Payment, the Owner shall make
          payment to the Design Builder.

          5.1.3 The Application for Payment shall constitute a representation by
          the Design Builder to the Owner that the design and construction have
          progressed to the point indicated; the quality of Work covered by the
          application is in accordance with the Contract Documents; and the
          Design Builder is entitled to payment in the amount requested.

          5.1.4 Upon receipt of payment from the Owner, the Design Builder shall
          promptly pay the other design professionals and each contractor the
          amount to which each is entitled in accordance with the terms of their
          respective contracts.

          5.1.5 The Owner shall have no obligation under this Agreement to pay
          or to be responsible in any way for payment to another design
          professional, or a contractor performing portions of the Work.

          5.1.6 Neither progress payment nor partial or entire use or occupancy
          of the Project by the Owner shall constitute acceptance of Work not in
          accordance with the Contract Documents.

          5.1.7 The Design Builder warrants that title to all construction
          covered by an Application for Payment will pass to the Owner no later
          than the time of payment. The Design Builder further warrants that
          upon submittal of an Application for Payment all construction for
          which payments have been received from the Owner shall be free and
          clear of liens, claims, security Interests or encumbrances in favor of
          the Design Builder or any other person or entity performing
          construction at the site or furnishing materials or equipment relating
          to the construction.

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          5.1.8 Upon compliance with the Process Guarantee, the Owner shall pay
          the Design Builder the retainage, if any, less the reasonable cost to
          correct or complete incorrect or incomplete Work. Final payment of
          such withheld sum shall be made upon correction or completion of such
          Work.

5.2.      FINAL PAYMENT

          5.2.1 When the Work has been completed and the contract fully
          performed, the Design Builder shall submit a final application for
          payment to the Owner, who shall make final payment within ten (10)
          days of receipt.

          5.2.2 The making of final payment shall constitute a waiver of claims
          by the Owner except those arising from:

                   5.2.2.1  liens, claims, security interests or encumbrances
                   arising out of the Contract and unsettled;

                   5.2.2.2  failure of the Work to comply with the requirements
                   of the Contract Documents; or

                   5.2.2.3  terms of special warranties required by the Contract
                   Documents

          5.2.3 Acceptance of final payment shall constitute a waiver of all
          claims by the Design Builder except those previously made in writing
          and identified by the Design Builder as unsettled at the time of final
          Application for Payment.

5.3       INTEREST PAYMENTS

          5.3.1 Payments due to the Design Builder under this Agreement which
          are not paid when due shall bear interest from the date due at the
          rate specified in Article 13, or in the absence of a specified rate,
          at the legal rate prevailing where the Project is located.

ARTICLE 6 - PROTECTION OF PERSONS AND PROPERTY

6.1 The Design Builder shall be responsible for initiating, maintaining and
providing supervision of safety precautions and programs in connection with the
performance of this Agreement.

6.2 The Design Builder shall take reasonable precautions for the safety of, and
shall provide reasonable protection to prevent damage, injury or loss to: (1)
employees on the Work and other persons who may be affected thereby; (2) the
Work and materials and equipment to be incorporate therein, whether in storage
on or off the site, under care, custody, or control of the Design Builder or the
Design Builder's contractors; and (3) other property at or adjacent thereto,
such as trees, shrubs, lawns, walks, pavements, roadways, structures and
utilities not designated for removal relocation, or replacement in the course of
construction.

6.3 The Design Builder shall give notices and comply with applicable laws,
ordinances, rules, regulations and lawful orders of public authorities bearing
on the safety of persons or property or their protection from damage, injury or
loss.

6.4 The Design Builder shall promptly remedy damage and loss (other than damage
or loss insured under property insurance provided or required by the Contract
Documents) to property at the site caused in whole or in part by the Design
Builder, a contractor of the Design Builder or anyone directly or indirectly
employed by any of them, or by anyone for whose acts they may be liable.

ARTICLE 7 - INSURANCE AND BONDS

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7.1       PERFORMANCE, PAYMENT AND OTHER BONDS

          7.1.1 If it is required by the Primary Lender, Design Builder shall
          furnish performance and payment Bonds, each in an amount at least
          equal to the Contract Price as security for the faithful performance
          and payment of all Design Builder's obligations to furnish, provide
          and pay for Construction and related materials under the Contract
          Documents. These Bonds shall remain in effect at least until one year
          after the date when final payment becomes due, except as provided
          otherwise by Laws or Regulations or by the Contract Documents. Design
          Builder shall also furnish such other Bonds as are required by Article
          14. All Bonds shall be in the form prescribed by the Contract
          Documents except as provided otherwise by Laws or Regulations, and
          shall be executed by such sureties as are named in the current list of
          "Companies Holding Certificates of Authority as Acceptable Surety
          Companies" as published in Circular 570 (amended) by the Audit Staff,
          Bureau of Government Financial Operations, U.S. Treasury Department.
          All Bonds signed by an agent must be accompanied by a certified copy
          of such agent's authority to act. The cost of the performance and
          payment bonds shall be paid by the Owner.

          7.1.2 If the surety on any Bond furnished by Design Builder is
          declared bankrupt or becomes insolvent or its right to do business is
          terminated in any state where any part of the Project is located or it
          ceases to meet the requirements of paragraph 7.1.1, Design Builder
          shall within thirty days thereafter substitute another Bond and surety
          meeting the requirements of paragraphs 7.1.1 and 7.9.

7.2       DESIGN/BUILDER'S LIABILITY INSURANCE

          7.2.1 The Design Builder shall purchase from and maintain, in a
          company or companies lawfully authorized to do business in the
          jurisdiction in which the Project is located, such insurance as will
          protect the Owner and Design Builder from claims set forth below which
          may arise out of or result from operations under this Agreement by the
          Design Builder.

                   7.2.1.1  Claims under workers' compensation, disability
                   benefits and other similar employee benefit acts;

                   7.2.1.2  Claims for damages because of bodily injury,
                   occupational sickness or disease, or death of Design
                   Builder's employees;

                   7.2.1.3 Claims for damages because of bodily injury, sickness
                   or disease, or death of any person other than Design
                   Builder's employees;

                   7.2.1.4 Claims for damages insured by customary personal
                   injury liability coverage which are sustained (i) by any
                   person as a result of an offense directly or indirectly
                   related to the employment of such person by Design Builder,
                   or (ii) by any other person for any other reason;

                   7.2.1.5 Claims for damages, other than to the Work itself,
                   because of injury to or destruction of tangible property
                   wherever located, including loss of use resulting therefrom;
                   and

                   7.2.1.6 Claims for damages because of bodily injury or death
                   of any person or property damage arising out of the
                   ownership, maintenance or use of any motor vehicle.

          7.2.2    The policies of insurance required by paragraph 7.2.1 shall:

                   7.2.2.1 With respect to insurance required by paragraphs
                   7.2.1.3 through 7.2.1.6 inclusive, include as additional
                   insureds Owner and any other persons or entities indicated in
                   Article 14, all of whom shall be listed as additional
                   insureds, and include coverage for the respective officers
                   and employees of all such additional insureds;

                                       12
<Page>

                   7.2.2.2 Include at least the specific coverages and be
                   written for not less than the limits of liability provided in
                   7.2.2.2.a through 7.2.2.2.c or required by Laws or
                   Regulations, whichever is greater;

                            a.   Worker's Compensation under Paragraph 7.2.1.1
                                 of the General Conditions:

                                 1.   State:                  Statutory
                                 2.   Applicable Federal:     Statutory
                                 3.   Employer's Liability:   $500,000

                            b.   Design Builder's General Liability (under
                                 paragraphs 7.2.1.2 through 7.2.1.6) which shall
                                 include completed operations and product
                                 liability coverages.

<Table>
                            <S>                                                    <C>
                                 1.   General Aggregate:
                                      (Except Products -- Completed Operations)    $ 2,000,000

                                 2.   Products -- Completed Operations Aggregate   $ 2,000,000

                                 3.   Personal and Advertising Injury
                                      (Per Person/Organization)                    $ 1,000,000

                                 4.   Each Occurrence
                                      (Bodily Injury and Property Damages)         $ 1,000,000

                                 5.   Property Damage liability insurance will
                                      provide Explosion, Collapse and Underground
                                      coverages where applicable.

                                 6.   Excess Liability

                                      General Aggregate                            $ 5,000,000
                                      Each Occurrence                              $ 5,000,000

                            c.   Automobile Liability:
                                 Combine Single
                                 Limit (Bodily Injury and Property Damage)         $ 1,000,000
</Table>

                   7.2.2.3  include completed operations insurance;

                   7.2.2.4 Include contractual liability insurance covering
                   Design Builder's indemnity obligations under paragraphs
                   3.2.11, 3.2.12 and 11.4;

                   7.2.2.5 Contain a provision or endorsement that the coverage
                   afforded will not be cancelled, materially changed or renewal
                   refused until at least 30 days prior written notice has been
                   given to Owner and each other additional insured indicated in
                   Article 14 to whom a certificate of insurance has been issued
                   (and the certificates of insurance furnished by the Design
                   Builder pursuant to paragraph 7.9.2 will so provide);

                   7.2.2.6. Remain in effect at least until final payment and at
                   all times thereafter when Design Builder may be correcting,
                   removing or replacing DEFECTIVE Construction in accordance
                   with Article 9; and

                                       13
<Page>

                   7.2.2.7 With respect to completed operations insurance, and
                   any other insurance coverage written on a claims-made basis,
                   this insurance shall remain in effect for at least one year
                   after final payment.

7.3       OWNER'S LIABILITY INSURANCE

          7.3.1 The Owner shall be responsible for purchasing and maintaining
          the Owner's General, Auto and Workmen's Compensation liability
          insurance. Optionally, the Owner may purchase and maintain other
          insurance for self-protection against claims which may arise from
          operations under this Agreement. The Design Builder shall not be
          responsible for purchasing and maintaining this optional Owner's
          liability insurance unless specifically required by the Contract
          Documents.

7.4       PROPERTY INSURANCE

          7.4.1 Unless otherwise provided in Article 14, Owner shall purchase
          and maintain property insurance upon the Construction at the Site in
          the amount of the full replacement cost thereof (subject to deductible
          amounts not exceeding $5000 per occurrence). This insurance will:

                   7.4.1.1 Include the interests of Owner, Design/Builder,
                   Subcontractors, and any other persons or entities indicated
                   in the Supplementary Conditions, each of whom is deemed to
                   have an insurable interest and shall be listed as an insured
                   or additional insured;

                   7.4.1.2 Be written on a Builder's Risk 'all-risk" or open
                   peril or special causes of loss policy form that shall at
                   least include insurance for physical loss and damage to the
                   Construction, temporary buildings, falsework and all
                   materials and equipment in transit, and shall insure against
                   at least the following perils or causes of loss: fire,
                   lightning, extended coverage, theft, vandalism and malicious
                   mischief, collapse, debris removal, demolition occasioned by
                   enforcement of Laws and Regulations, and such other perils or
                   causes of loss as may be specifically required by the
                   Supplementary Conditions;

                   7.4.1.3 Include expenses incurred in the repair or
                   replacement of any insured property (including but not
                   limited to fees and charges of engineers and design
                   professionals);

                   7.4.1.4 Be maintained in effect until final payment is made
                   unless otherwise agreed to in writing by Owner and
                   Design/Builder with thirty days written notice to each other
                   additional insured to whom a certificate of insurance has
                   been issued; and

                   7.4.1.5  Allow partial utilization in accordance with
                   paragraph 7.8.

          7.4.2    BOILER AND PRESSURE VESSEL INSURANCE

                   7.4.2.1 At the appropriate time during the construction
                   period, the Owner shall purchase and maintain Broad Coverage
                   Insurance for equipment such as boilers, other pressure
                   vessels, hot water boilers, fired storage water heaters,
                   fired coil water heaters, unfired pressure vessels,
                   machinery, and similar equipment or objects, which are
                   provided under the Contract for this Work and which may not
                   be covered under other insurances. The insurance shall be in
                   accordance with State Laws. Such coverage shall, as a
                   minimum, insure against loss or damages, including death or
                   bodily injury, from explosion, rupture, or bursting of the
                   equipment piping and normally covered appurtenances or other
                   similar hazards peculiar to the particular equipment or
                   object.

                   7.4.2.2 The policy shall name the Owner, the Design/Builder,
                   all Subcontractors and lower tier Sub-subcontractors as joint
                   insured.

                   7.4.2.3  The insurance shall be placed into effect prior to
                   the testing, use or start up of any equipment of object
                   provided under the Contract. The Design/Builder shall notify
                   the

                                       14
<Page>

                   Owner or insurance agent in ample time prior to testing or
                   startup of the object to permit any required inspections.

                   7.4.2.4 The policy, shall cover, as a minimum, (1) loss to
                   property of the insured, including extra costs of temporary
                   repair (2) death or bodily injury liability, including
                   defense, settlement and supplementary payments, and (3)
                   property damage liability including defense, settlement and
                   supplementary payments. The minimum limits shall be
                   $1,000,000 per occurrence.

                   7.4.2.5 After acceptance of the Work, or Upon occupancy by
                   the Owner, the Owner will provide pressure vessel insurance.
                   Owner will purchase and maintain boiler, machinery and other
                   property insurance as indicated in paragraph 7.4.

                   7.4.2.6 Entities deemed to have an insurable interest shall
                   be listed as an insured or additional insured.

          7.4.3 All the policies of insurance (and the certificates or other
          evidence thereof) required to be purchased and maintained by Owner in
          accordance with paragraph 7.4 will contain a provision or endorsement
          that the coverage afforded will not be cancelled or materially changed
          or renewal refused until at least 30 days' prior written notice has
          been given to Design Builder and to each other additional insured to
          whom a certificate of insurance has been issued and will contain
          waiver provisions in accordance with paragraph 7.5.1.

          7.4.4. Owner shall not be responsible for purchasing and maintaining
          any property insurance to protect the interests of Design Builder,
          Subcontractors, Supplies, Engineers or others in the Work to the
          extent of any deductible amounts. The risk of loss within such
          identified deductible amount, will be borne by Design Builder,
          Subcontractor or others suffering any such loss and if any of them
          wishes property insurance coverage within the limits of such amounts,
          each may purchase and maintain it at the purchaser's own expense.

7.5       WAIVER OF RIGHTS

          7.5.1 Owner and Design Builder intend that all policies purchased in
          accordance with paragraph 7.4 will protect Owner, Design Builder,
          Engineers, Subcontractors, and all other individuals or entities
          indicated in Article 14 to be listed as insured or additional insureds
          in such policies and will provide primary coverage for all losses and
          damages caused by the perils or causes of loss covered thereby. All
          such policies shall contain provisions to the effect that in the event
          of payment of any loss or damage the insurers will have no rights of
          recovery against any of the insureds or additional insureds
          thereunder. Owner and Design Builder waive all rights against each
          other and their respective officers, directors, employees and agents
          for all losses and damages caused by, arising out of or resulting from
          any of the perils or causes of loss covered by such policies and any
          other property insurance applicable to the Work; and, in addition,
          waive all such rights against Subcontractors, Suppliers, Engineers and
          all other individuals or entities indicated in the Supplementary
          Conditions to be listed as insureds or additional insureds under such
          policies for losses and damages so caused. None of the above waivers
          shall extend to the rights that any party making such waiver may have
          to the proceeds of insurance held by Owner as trustee or otherwise
          payable under any policy so issued. In addition, Owner waives all
          rights against Design Builder, Subcontractors, Engineers and Suppliers
          and the officers, directors, employees and agents of any of them for
          business interruption, loss of use of Owner's property and any other
          consequential damages caused by, arising out of or resulting from any
          of such insured perils or causes of loss or any other peril or cause
          of loss whether or not insured.

7.6       RECEIPT AND APPLICATION OF PROCEEDS

                                       15
<Page>

          7.6.1 Any insured loss under the policies of insurance required by
          paragraph 7.4 will be adjusted with Owner and made payable to Owner as
          fiduciary for the insureds, as their interests may appear, subject to
          the requirements of any applicable mortgage clause and of paragraph
          7.6.2. Owner shall deposit in a separate account any money so
          received, and shall distribute it in accordance with such agreement as
          the parties in interest may reach. If no other special agreement is
          reached the damaged Work shall be repaired or replaced, the moneys so
          received applied on account thereof and the Work and the cost thereof
          covered by an appropriate Change Order or Written Amendment.

          7.6.2 Owner as fiduciary shall have power to adjust and settle any
          loss with the insurers unless one of the parties in interest shall
          object in writing within fifteen days after the occurrence of loss to
          Owner's exercise of this power. If such objection be made, Owner as
          fiduciary shall make settlement with the insurers in accordance with
          such agreement as the parties in interest may reach. If no such
          agreement among the parties in interest is reached, Owner as fiduciary
          shall adjust and settle the loss with the insurers and, if required in
          writing by any party in interest, Owner as fiduciary shall give bond
          for the proper performance of such duties.

7.7       ACCEPTANCE OF BONDS AND INSURANCE; OPTION TO REPLACE

          7.7.1 If either party has any objection to the coverage afforded by or
          other provisions of the Bonds or insurance required to be purchased
          and maintained by the other party in accordance with Article 7 on the
          basis of their not complying with the Contract Documents, the
          objecting party shall so notify the other party in writing within ten
          days after receipt of the certificates. Owner and Design Builder shall
          each provide to the other such additional information in respect of
          insurance provided as the other may reasonably request. If either
          party does not purchase or maintain all of the Bonds and insurance
          required of such party by the Contract Documents, such party shall
          notify the other party in writing of such failure to purchase prior to
          the start of the Work, or of such failure to maintain prior to any
          change in the required coverage. Without prejudice to any other right
          or remedy, the other party may elect to obtain equivalent Bonds or
          insurance to protect such other party's interests at the expense of
          the party who was supposed to provide such coverage, and a Change
          Order or Written Amendment shall be issued to adjust the Contract
          Price accordingly.

7.8       PARTIAL UTILIZATION -- PROPERTY INSURANCE

          7.8.1 If Owner finds it necessary to occupy or use a portion or
          portions of the Work prior to Substantial Completion of all the
          construction, such use or occupancy may be accomplished; provided that
          no such use or occupancy shall commence before the insurers providing
          the property insurance have acknowledged notice thereof and in writing
          effected any changes in coverage necessitated thereby. The insurers
          providing the property insurance shall consent by endorsement on the
          policy or policies, but the property insurance shall not be cancelled
          or permitted to lapse on account of any such partial use or occupancy.

7.9       LICENSED SURETIES AND INSURERS; CERTIFICATES OF INSURANCE

          7.9.1 All Bonds and insurance required by the Contract Documents to be
          purchased and maintained by Owner or Design Builder shall be obtained
          from surety or insurance companies that are duly licensed or
          authorized in the jurisdiction in which the Project is located to
          issue Bonds or insurance policies for the limits and coverage's so
          required. Such surety and insurance companies shall also meet such
          additional requirements and qualifications as may be provided in
          Article 14.

          7.9.2 Design Builder shall deliver to Owner, with copies to each
          additional insured indicated in Article 14, certificates of insurance
          (and other evidence of insurance requested by Owner or any other
          additional insured) which Design/Builder is required to purchase and
          maintain in accordance with paragraph 7.2.1. Owner shall deliver to
          Design Builder, with copies to each

                                       16
<Page>

          additional insured indicated in Article 14, certificates of insurance
          (and other evidence of insurance requested by Design Builder or any
          other additional insured) which Owner is required to purchase and
          maintain in accordance with paragraphs 7.4.1 and 7.4.2.

ARTICLE 8 - CHANGES IN THE WORK

8.1       CHANGES

          8.1.1 Changes in the Work may be accomplished after execution of this
          Agreement, without invalidating this Agreement, by Change Order,
          Construction Change Directive, or order for a minor change in the
          Work, subject to the limitations stated in the Contract Documents.

          8.1.2 A Change Order shall be based upon agreement between the Owner
          and the Design Builder; a Construction Change Directive may be issued
          by the Owner without the agreement of the Design Builder; an order for
          a minor change in the Work may be issued by the Design Builder alone.

          8.1.3 Changes in the Work shall be performed under applicable
          provisions of the Contract Documents, and the Design Builder shall
          proceed promptly, unless otherwise provided in the Change Order,
          Construction Change Directive, or order for a minor change in the
          Work.

          8.1.4 If unit prices are stated in the Contract Documents or
          subsequently agreed upon, and if quantities originally contemplated
          are so changed in a proposed Change Order or Construction Change
          Directive that application of such unit prices to quantities of Work
          proposed will cause substantial inequity to the Owner or the Design
          Builder, the applicable unit prices shall be equitably adjusted.

8.2       CHANGE ORDERS

          8.2.1 A Change Order is a written instrument prepared by the Design
          Builder and signed by the Owner and the Design Builder, stating their
          agreement upon all of the following:

                   .1       a change in the Work'

                   .2       the amount of the adjustment, if any, in the
                            Contract Sum; and

                   .3       the extent of the adjustment, if any, in the
                            Contract Time.

          8.2.2 If the Owner requests a proposal for a change in the Work from
          the Design Builder and subsequently elects not to proceed with the
          change, a Change Order shall be issued to reimburse the Design Builder
          for any costs incurred for estimating services, design services or
          preparation of proposed revisions to the Contract Documents.

8.3       CONSTRUCTION CHANGE DIRECTIVES

          8.3.1 A Construction Change Directive is a written order prepared and
          signed by the Owner, directing a change in the Work prior to agreement
          on adjustment, if any, in the Contract Sum or Contract Time, or both.

          8.3.2 Except as otherwise agreed by the Owner and the Design Builder,
          the adjustment to the Contract Sum shall be determined on the basis of
          reasonable expenditures and savings of those performing the Work
          attributable to the change, including the expenditures for design
          services and revisions to the Contract Documents. In such case, the
          Design Builder shall keep and present an itemized accounting together
          with appropriate supporting data for inclusion in a Change Order.
          Unless otherwise provided in the Contract Documents, costs for these
          purposes shall be limited to the following:

                                       17
<Page>

                   .1       costs of labor, including social security, old age
                            and unemployment insurance, fringe benefits required
                            by agreement or custom, and workers' compensation
                            insurance;

                   .2       costs of materials, supplies and equipment,
                            including cost of transportation, whether
                            incorporated or consumed;

                   .3       rental costs of machinery and equipment exclusive of
                            hand tools, whether rented from the Design Builder
                            or others;

                   .4       costs of premiums for all bonds and insurance permit
                            fees, and sales, use or similar taxes;

                   .5       additional costs of supervision and field office
                            personnel directly attributable to the change; and
                            fees paid to other design professionals.

          8.3.3 Pending final determination of cost to the Owner, amounts not in
          dispute may be included in Applications for Payment. The amount of
          credit to be allowed by the Design Builder to the Owner for deletion
          or change which results in a net decrease in the Contract Sum and
          Contract Time, such agreement shall be effective immediately and shall
          be recorded by preparation and execution of an appropriate Change
          Order.

8.4       MINOR CHANGES IN THE WORK

          8.4.1 The Design Builder shall have authority to make minor changes in
          the Construction Documents and construction consistent with the intent
          of the Contract Documents when such minor changes do not involve
          adjustment in the Contract Sum or extension of the Contract Time. The
          Design Builder shall promptly inform the Owner, in writing, of minor
          changes in the Construction Documents and construction.

8.5       CONCEALED CONDITIONS

          8.5.1 If conditions are encountered at the site which are (1)
          subsurface or otherwise concealed physical conditions which differ
          materially from those indicated in the Contract Documents, or (2)
          unknown physical conditions of an unusual nature which differ
          materially from those ordinarily found to exist and generally
          recognized as inherent in construction activities of the character
          provided for in the Contract Documents, then notice by the observing
          party shall be given to the other party promptly before conditions are
          disturbed and in no event later than 21 days after first observance of
          the conditions. The Contract Sum shall be equitably adjusted for such
          concealed or unknown conditions by Change Order upon claim by either
          party made within 21 days after the claimant becomes aware of the
          conditions.

8.6       REGULATORY CHANGES

          8.6.1 The Design Builder shall be compensated for changes in the
          construction necessitated by the enactment or revisions of codes, laws
          or regulations subsequent to the submission of the Design Builder's
          Proposal.

ARTICLE 9 - CORRECTION OF WORK

9.1       The Design Builder shall promptly correct Work rejected by the Owner
          or known by the Design Builder to be defective or failing to conform
          to the requirements of the Contract Documents, whether observed before
          or after Substantial Completion and whether or not fabricated,
          installed or completed. The Design Builder shall bear costs of
          correcting such rejected Work, including additional testing and
          inspections.

                                       18
<Page>

9.2       If, within one (1) year after the date of Substantial Completion of
          the Work or, after the date for commencement of warranties established
          in a written agreement between the Owner and the Design Builder, or by
          terms of an applicable special warranty required by the Contract
          Documents, any of the Work is found to be not in accordance with the
          requirements of the Contract Documents, the Design Builder shall
          correct it promptly after receipt of a written notice from the Owner
          to do so unless the Owner has previously given the Design Builder a
          written acceptance of such condition.

9.3       Nothing contained in this Article 9 shall be construed to establish a
          period of limitation with respect to other obligations which the
          Design/Builder might have under the Contract Documents. Establishment
          of the time period of one (1) year as described in Subparagraph 9.2
          relates only to the specific obligation of the Design Builder to
          correct the Work, and has no relationship to the time within which
          proceedings may be commenced to establish the Design Builder's
          liability with respect to the Design Builder's obligations other than
          specifically to correct the Work.

9.4       If the Design Builder fails to correct nonconforming Work as required
          or fails to carry out Work in accordance with the Contract Documents,
          the Owner, by written order signed personally or by an Agent
          specifically so empowered by the Owner in writing, may order the
          Design Builder to stop the Work, or any portion thereof, until the
          cause for such order has been eliminated; however, the Owner's right
          to stop the Work shall not give rise to a duty on the part of the
          Owner to exercise the right for benefit of the Design Builder or other
          persons or entities.

9.5       If the Design Builder defaults or neglects to carry out the Work in
          accordance with the Contract Documents and fails within fourteen (14)
          days after receipt of written notice from the Owner to commence and
          continue correction of such default or neglect with diligence and
          promptness, the Owner may give a second written notice to the Design
          Builder and, fourteen (14) days following receipt by the Design
          Builder of that second written notice and without prejudice to other
          remedies the Owner may have, correct such deficiencies. In such case
          an appropriate Change Order shall be issued deducting from payments
          then or thereafter due the Design Builder, the costs of correcting
          such deficiencies. If the payments then or thereafter due the Design
          Builder are not sufficient to cover the amount of the deduction, the
          Design Builder shall pay the difference to the Owner. Such action by
          the Owner shall be subject to dispute resolution procedures as
          provided in Article 10.

ARTICLE 10 - DISPUTE RESOLUTION - MEDIATION AND ARBITRATION

10.1      Claims, disputes or other matters in question between the parties to
          this Agreement arising out of or relating to this Agreement or breach
          thereof shall be subject to and decided by mediation or arbitration.
          Such mediation or arbitration shall be conducted in accordance with
          the Construction Industry Mediation or Arbitration Rules of the
          American Arbitration Association currently in effect.

10.2      In addition to and prior to arbitration, the parties shall endeavor to
          settle disputes by mediation. Demand for mediation shall be filed in
          writing with the other party to this Agreement and with the American
          Arbitration Association. A demand for mediation shall be made within a
          reasonable time after the claim, dispute, or other matter in question
          has arisen. In no event shall the demand for mediation be made after
          the date when institution of legal or equitable proceedings based on
          such claim, dispute or other matter in question would be barred by the
          applicable statutes of repose or limitations.

10.3      Demand for arbitration shall be filed in writing with the other party
          to this Agreement and with the American Arbitration Association. A
          demand for arbitration shall be made within a reasonable time after
          the claim, dispute or other matter in question has arisen. In no event
          shall the demand for arbitration be made after the date when
          institution of legal or equitable proceedings based on such claim,
          dispute or other matter in question would be barred by the applicable
          statutes of repose or limitations.

                                       19
<Page>

10.4      An arbitration pursuant to this Article may be joined with an
          arbitration involving common issues of law or fact between the Design
          Builder and any person or entity with whom the Design Builder has a
          contractual obligation to arbitrate disputes. No other arbitration
          arising out of or relating to this Agreement shall include, by
          consolidation, joinder or in any other matter, an additional person or
          entity not a party to this Agreement or not a party to an agreement
          with the Design Builder, except by written consent containing a
          specific reference to this Agreement signed by the Owner, the Design
          Builder and any other person or entities sought to be joined. Consent
          to arbitration involving an additional person or entity shall not
          constitute consent to arbitration of any claim, dispute or other
          matter in question not described in the written consent or with a
          person or entity not named or described therein. The foregoing
          agreement to arbitrate and other agreements to arbitrate with and
          additional person or entity duty consented to by the parties to this
          Agreement shall be specifically enforceable in accordance with
          applicable law in any court having jurisdiction thereof.

10.5      The award rendered by the arbitrator or arbitrators shall be final,
          and judgment may be entered upon it in accordance with applicable law
          in any court having jurisdiction thereof. Any and all arbitration or
          mediation hearings shall be held in Sioux Falls, SD.

ARTICLE 11 - MISCELLANEOUS PROVISIONS

11.1      Unless otherwise provided, this Agreement shall be governed by the law
          of the place where the Project is located.

11.2      RELATED CONSTRUCTION OF SITE

          11.2.1 Owner may perform other Work related to the Project at the Site
          by Owner's own forces, or let other direct contracts therefore or have
          other work performed by utility owners. If the fact that such other
          work is to be performed was not noted in the Conceptual Documents then
          (I) written notice thereof will be given to Design Builder prior to
          starting any such other work and (ii) Design Builder may make a claim
          therefore as provided in Article 8 if Design Builder believes that
          such performance will involve additional expense to Design Builder or
          requires additional time and the parties are unable to agree as to the
          amount or extent thereof.

          11.2.2 Design Builder shall afford each other contractor who is a
          party to such a direct contract and each utility owner (and Owner, if
          Owner is performing the additional work with Owner's employees) proper
          and safe access to the Site and a reasonable opportunity for the
          introduction and storage of materials and equipment and the execution
          of such other work and shall properly connect and coordinate the
          Construction with theirs. Unless otherwise provided in the Contract
          Documents, Design Builder shall do all cutting, fitting and patching
          of the Work that may be required to make its several parts come
          together properly and integrate with such other work. Design Builder
          shall not endanger any work of others by cutting, excavating or
          otherwise altering their work with the written consent of Owner and
          the others whose work will be affected. The duties and
          responsibilities of Design Builder under this paragraph are for the
          benefit of such utility owners and other contractors to the extent
          that there are comparable provisions for the benefit of Design Builder
          in said direct contracts between Owner and such utility owners and
          other contractors.

          11.2.3 If the proper execution or results of any part of Design
          Builder's Work depends upon work performed or services provided by
          others under this paragraph 11.2, Design Builder shall inspect such
          other work and appropriate instruments of service and promptly report
          to Owner in writing any delays, defects of deficiencies in such other
          work or services that render it unavailable or unsuitable for the
          proper execution and results of Design Builder's Work. Design
          Builder's failure so to report will constitute an acceptance of such
          other work as fit and proper for integration with Design Builder's
          Work except for latent or nonapparent defects and deficiencies in such
          other work.

                                       20
<Page>

          11.2.4   Coordination

                   11.2.4.1 If Owner contracts with others for the performance
                   of other work on the Project at the Site, the following will
                   be set forth in Article 14:

                            a.   The individual or entity who will have
                            authority and responsibility for coordination of the
                            activities among the various prime contractors will
                            be identified;

                            b.   The specific matters to be covered by such
                            authority and responsibility will be itemized; and

                            c.   The extent of such authority and
                            responsibilities will be provided.

                   11.2.4.2 Unless otherwise provided in Article 14, Owner shall
                   have sole authority and responsibility in respect of such
                   coordination.

11.3      CLAIMS FOR DAMAGES

          11.3.1 If either party to this Agreement suffers injury or damage to
          person or property because of an act or omission of the other party,
          of any of the other party's employees or agents, or of others for
          whose acts such party is legally liable, written notice of such injury
          or damage, whether or not insured, shall be given to the other party
          within a reasonable time not exceeding 21 days after first observance.
          The notice shall provide sufficient detail to enable the other party
          to investigate the matter. If a claim of additional cost or time
          related to this claim is to be asserted, it shall be filed in writing.

11.4      INDEMNIFICATION

          11.4.1 To the fullest extent permitted by law, the Design Builder
          shall indemnify and hold harmless the Owner, Owner's consultants, and
          agents and employees of any of them from and against claims, damages,
          losses and expenses, including but not limited to attorney's fees,
          arising out of or resulting from performance of the Work, provided
          that such claim, damage, loss or expense is attributable to bodily
          injury, sickness, disease or death, or to injury to or destruction of
          tangible property (other than the Work itself) including loss of use
          resulting therefrom, but only to the extent caused in whole or in part
          by negligent acts or omissions of the Design Builder, anyone directly
          or indirectly employed by the Design Builder or anyone for whose acts
          the Design Builder may be liable. Such obligation shall not be
          construed to negate, abridge, or reduce other rights or obligations of
          indemnity which would otherwise exist as to a party or person
          described in this Paragraph 11.4.

          11.4.2 To the fullest extent permitted by law, the Owner shall
          indemnify and hold harmless the Design Builder, Design Builder's
          consultants, and agents and employees of any of them from and against
          claims, damages, losses and expenses, including but not limited to
          attorney's fees, arising out of or resulting from performance of the
          Work, provided that such claim, damage, loss or expense is
          attributable to bodily injury, sickness, disease or death, or to
          injury to or destruction of tangible property (other than the Work
          itself) including loss of use resulting therefrom, but only to the
          extent caused in whole or in part by negligent acts or omissions of
          the Owner, anyone directly or indirectly employed by the Owner or
          anyone for whose acts the Owner may be liable. Such obligation shall
          not be construed to negate, abridge, or reduce other rights or
          obligations of indemnity which would otherwise exist as to a party or
          person described in this Paragraph 11.4.

          11.4.3 In claims against any person or entity indemnified under this
          Paragraph 11.4 by an employee of the Design Builder, anyone directly
          or indirectly employed by the Design Builder or anyone for whose acts
          the Design Builder may be liable, the indemnification obligation under
          this

                                       21
<Page>

          Paragraph 11.4 shall not be limited by a limitation on amount or type
          of damages, compensation or benefits payable by or for the Design
          Builder under worker's compensation acts, disability benefit acts or
          other employee benefit acts.

11.5      SUCCESSORS AND ASSIGNS

          11.5.1 The Owner and Design Builder, respectively, bind themselves,
          their partners, successors, assigns and legal representatives to the
          other party to this Agreement and to the partners, successors and
          assigns of such other party with respect to all covenants of this
          Agreement. Neither the Owner nor the Design Builder shall assign this
          Agreement without the written consent of the other. The Owner may
          assign this Agreement to any institutional lender providing
          construction financing, and the Design Builder agrees to execute all
          consents reasonably required to facilitate such an assignment. If
          either party makes such an assignment, that party shall nevertheless
          remain legally responsible for all obligations under this Agreement,
          unless otherwise agreed by the other party.

11.6      EXTENT OF AGREEMENT

          11.6.1 This Agreement represents the entire agreement between the
          Owner and the Design Builder and supersedes prior negotiations,
          representations or agreements, either written or oral. This Agreement
          may be amended only by written instrument and signed by both the Owner
          and the Design Builder.

ARTICLE 12 - TERMINATION OF THE AGREEMENT

12.1      TERMINATION BY THE OWNER

          12.1.1 This Agreement may be terminated by the Owner upon 14 days'
          written notice to the Design Builder in the event that the Project is
          abandoned. If such termination occurs, the Owner shall pay the Design
          Builder for Work completed and for proven loss sustained upon
          materials, equipment, tools, and construction equipment machinery,
          including reasonable profit and applicable damages.

          12.1.2 If the Design Builder defaults or persistently fails or
          neglects to carry out the Work in accordance with the Contract
          Documents or fails to perform the provisions of this Agreement, the
          Owner may give written notice that the Owner intends to terminate this
          Agreement. If the Design Builder fails to correct the defaults,
          failure or neglect within fourteen (14) days after being given notice,
          the Owner may then give a second written notice and, after an
          additional fourteen (14) days the Owner may without prejudice to any
          other remedy terminate the employment of the Design Builder and take
          possession of the site and of all materials, equipment and finish the
          Work by whatever method the Owner may deem expedient. If the unpaid
          balance of the Contract Sum exceeds the expense of finishing the Work
          and all damages incurred by the Owner, such excess shall be paid to
          the Design Builder. If the expense of completing the Work and all
          damages incurred by the Owner exceeds the unpaid balance, the Design
          Builder shall pay the difference to the Owner. This obligation for
          payment shall survive termination of this Agreement.

12.2      TERMINATION BY THE DESIGN/BUILDER

          12.2.1 If the Owner fails to make payment when due, the Design Builder
          may give written notice of the Design Builder's intention to terminate
          this Agreement. If the Design Builder fails to receive payment within
          fourteen (14) days after receipt of such notice by the Owner, the
          Design Builder may give a second written notice and, fourteen (14)
          days after receipt of such second written notice by the Owner, may
          terminate this Agreement and recover from the Owner payment for Work
          executed and for proven losses sustained upon materials, equipment,
          tools, and construction equipment and machinery, including reasonable
          profit and applicable damages.

                                       22
<Page>

ARTICLE 13 - BASIS OF COMPENSATION

The Owner shall compensate the Design Builder in accordance with Article 5,
Payments, and the other provisions of this Agreement as described below.

13.1      COMPENSATION

          13.1.1 For the Design Builder's performance of the Work, as described
          in Paragraph 3.2 and including any other services listed in Article 14
          as part of Basic Services, the Owner shall pay the Design Builder in
          current funds the Contract Sum as follows:

          Forty Three Million Eight Hundred Fifty Seven Thousand Seven Hundred
          and Ninety Two Dollars ($43,857,792.00). This price includes sales and
          use tax and will remain valid as long as construction is started by
          June 15, 2001. A Start date after that time will cause the price to be
          reviewed and adjusted accordingly.

          13.1.2 For Additional Services, as described in Paragraph 3.3 and
          including any other services listed in Article 14 as Additional
          Services, compensation shall be at a negotiated price.

13.2      REIMBURSABLE EXPENSES

          13.2.1 Reimbursable Expenses are in addition to the compensation for
          Basic and Additional Services, and include actual expenditures made by
          the Design Builder and the Design/Builder's employees and contractors
          in the interest of the Project.

          13.2.2 FOR REIMBURSABLE EXPENSES, compensation shall be a multiple of
          (1.1) times the amounts expended.

13.3      INTEREST PAYMENTS

          13.3.1   The rate of interest for past due payments shall be as
          follows:

          (1.5%) one and one half percent per month.

ARTICLE 14 - OTHER CONDITIONS AND SERVICES

14.1 The Basic Services to be performed shall be commenced on issuance of Notice
to Proceed and, subject to authorized adjustments and to delays not caused by
the Design Builder, Substantial Completion shall be achieved in fourteen (14)
months following the start of concrete work.

14.2      The Basic Services beyond those described in Article 3 are as follows:

          None

14.3      Additional Services beyond those described in Article 3 are as
          follows:

          None

14.4      The Design Builder shall submit an Application for Payment on or about
          the Twelfth (12) day of each month.

14.5      The Design Builders Exhibits include the following documents:

<TABLE>
<CAPTION>
              Title                                                 Date
              -----                                                 ----

<S>                                                                 <C>
Exhibit 1 --  Schedule of Contract Values consisting of 2 pages     10/4/2000

                                       23
<Page>

<S>                                                                 <C>
Exhibit 2 --  Licensing Agreement for Ethanol Production Process
Exhibit 3 --  Process Guarantee consisting of 1 page                10/6/2000
Exhibit 4 --  Notice to Proceed consisting of 1 page
</TABLE>

14.6      OTHER CONDITIONS

          14.6.1   An initial payment of seventy five thousand dollars ($75,000)
                   for permitting and preliminary design will accrue at no
                   interest cost upon signing of this document and shall become
                   due and payable at completion of the Owner's initial Equity
                   Drive. Upon the completion of the Owner's successful Equity
                   Drive, three hundred thousand dollars ($300,000.00) will be
                   due and payable for Preliminary Engineering for the Project
                   within 15 days.

          14.6.2   Owner will apply for and receive any applicable state sales
                   or excise tax refunds. Design Builder will assist the Owner
                   in compiling necessary documentation.

           NO OTHER CONDITIONS ARE NEITHER EXPRESSED NOR IMPLIED OTHER
                            THAN THOSE STATED ABOVE.

IN WITNESS WHEREOF, OWNER and DESIGN BUILDER have signed this Agreement in
duplicate. One counterpart each has been delivered to OWNER and DESIGN BUILDER.
All portions of the Contract Documents have been signed, initialed or identified
by OWNER and DESIGN BUILDER.

This Owner -- Design Builder Agreement will be effective on the day and year
first written above.

                                       24
<Page>

OWNER: NORTHERN GROWERS COOPERATIVE       DESIGN BUILDER:  BROIN AND ASSOCIATES,
                                          INC.
BY: /S/ Jim Peterson                      BY: /S/ Jeffrey S. Broin
   -----------------------------------       -----------------------------------

Name:  JIM PETERSON                       Name:  JEFFREY S. BROIN
Title: CHAIRMAN                           Title: C.E.O.

        [CORPORATE SEAL]                         [CORPORATE SEAL]

Attest: /S/ Del Strasser                  Attest: /S/ Wendy S. John
       -------------------------------           -------------------------------

Address for giving notices:               Address for giving notices:

NORTHERN GROWERS COOPERATIVE              BROIN AND ASSOCIATES, INC.
P.O. BOX 225                              2209 EAST 57TH STREET NORTH
MILBANK, SD 57252                         SIOUX FALLS, SD 57104

                                       25
<Page>

[Portions of this Exhibit to Exhibit 10.1 are filed separately with the SEC
pursuant to a confidential treatment request.]

                           MILLBANK, SD 40 MMGPY PLANT

          CONTRACT SCHEDULE OF VALUES, PROJECT ESTIMATE

          (For location just South of Big Stone Power Plant perimeter fence)

THE CONTRACT INCLUDES:

Fire protection water line to Big Stone Plant

Steam line and condensate line to Big Stone Plant

Demineralized water line from Big Stone Plant

Wastewater discharge line to Big Stone Plant cooling pond

Wastewater treatment for discharge to Big Stone Plant cooling pond
Approximate discharge parameters: 50 mg/I BOD5 and 50 mg/I TSS

Connection to Big Stone City's sewer line for sanitary wastewater

Dual fuel boiler(s) to back up steam supply from Big Stone Plant

An allowance for a reboiler and pressure reducing station for steam from Big
Stone Plant

THE CONTRACT DOES NOT INCLUDE:

Water line to the site

Gas lines to the site and on-site gas lines

Electrical service to the site and primary transmission to the transformers

Electrical transformers to 460 Volt (To be provided by utility company?)

Water treatment systems (demineralized water will be purchased from Big Stone
Plant)

Improvements to existing roadways

Corn drying system

Performance and payment bond

Propane stand-by system for fuel supply

Co-generation or any back-up generation of electricity

ADDITIONAL NOTES:

The Contract includes the following Allowances:
          ***      for Site preparation
                   (Gravel roadways and parking lots, Storm sewers, Building
                   base excavation and backfill, Rail Spur Sub-grade, Excavation
                   and backfill, NOT Site water, Sewer, or Septic)
***      for a reboiler and pressure reducing station for steam from Big Stone
Plant
***      for Railroad switches and trackage
***      for other project equipment
          (Truck & power equipment, Maintenance equipment, Spare parts, Lab
          equipment, Safety equipment, Office equipment & office computer
          systems)

                                       26
<Page>

                SCHEDULE OF CONTRACT VALUES AND PROJECT ESTIMATE

<Table>
<Caption>
CONTRACT                                    VALUES AT BIG    APPROX. DIFFERENCE
                                               STONE SITE     FROM GENERIC SITE
                                            -------------    ------------------
<S>                                          <C>             <C>
100      SITE WORK                           $        ***    $              ***
200      BUILDINGS                           $        ***    $              ***
300      MECHANICAL                          $        ***    $              ***
400      PROCESS SYSTEMS                     $        ***    $              ***
500      ELECTRICAL                          $        ***    $              ***
600      INSTRUMENTATION                     $        ***    $              ***
700      GRAIN SYSTEMS                       $        ***    $              ***
800      OTHER CONSTRUCTION COSTS            $        ***    $              ***
900      OTHER PROJECT EQUIPMENT, COSTS      $        ***    $              ***
         TOTAL CONTRACT COST                 $ 43,857,792    $              ***
         EXCISE TAX                          $    877,156    $              ***

OWNER'S PROJECT COSTS
1010  LAND                                   $          0    $              ***
1020  LOAN ORIGINATION AND INTEREST          $  1,100,000
1030  OPERATING COST PRIOR TO START-UP       $    300,000
1040  MISCELLANEOUS ADDITIONAL
      DEVELOPMENT                            $    300,000
1045  OWNER'S CONTINGENCY                    $    411,792    $              ***
1050  START UP AND OPERATING CAPITAL         $  3,800,000
1090  REFUND OF SALES AND EXCISE TAX         $ (1,846,740)   $              ***

1000  OWNER'S PROJECT COSTS                  $  4,065,052    $              ***

      TOTAL PROJECT COST:                    $ 48,800,000    $              ***
</Table>

                                       27
<Page>

                                PROCESS GUARANTEE

     The following PROCESS GUARANTEE is provided by Broin and Associates, Inc.
in relation to the Northern Growers Cooperative ethanol plant project located in
Milbank, South Dakota (The Project).

BROIN AND ASSOCIATES GUARANTEES THE FOLLOWING:

1.   PROJECT PERFORMANCE SPECIFICATION

     The Project is guaranteed to produce 4,807 gallons per hour of fuel grade
(Williams Pipeline Standard) ethanol including the contained denaturant
(gasoline). The Project is guaranteed to have the ability to evaporate all
necessary thin stillage and dry all distillers' grains produced at 100%
guaranteed capacity. The plant is guaranteed to yield at least 2.7 gallons of
ethanol (denatured) and at least 17 pounds of distillers' dried grains with
solubles per 56 lb. bushel of corn (test weight 54 pounds or greater).

2.   TESTING PERIOD

     The project is guaranteed to reach performance specifications for a period
of seven (7) days before the Engineer will leave the site. The testing period
will be completed with the Owner's personnel and raw materials.

3.   REMEDIES

     If the Project does not meet the above guarantees during the timeframe
described in the Owners Agreement, Broin and Associates, Inc. will perform the
following at their expense: 1) use Broin and Associates, Inc.'s best effort to
correct any problem, 2) repair or replace any failing component(s) or system(s)
and 3) obtain any additional resources needed to satisfy guarantees.

This document contains the entire Process Guarantee provided by Broin and
Associates, Inc. No oral statements, representations or prior written matter not
contained in this document shall have any effect regarding Process Guarantee.

BROIN AND ASSOCIATES, INC.

 /S/ Jeffrey S. Broin                        November 2, 2000
-----------------------------------          -----------------------------
Jeffrey S. Broin                             Date
C.E.O.

                                       28
<Page>

                                NOTICE TO PROCEED

                                                 Dated:________________________

TO:       Broin and Associates

ADDRESS:  2209 East 57th Street North

          Sioux Falls, SD  57104

Contract: Agreement Between Owner and Design Builder

Project:  To perform and furnish design, engineering, and construction services
          for a 40 MMGPY nameplate dry mill fuel ethanol processing plant. The
          project is located in Milbank, South Dakota.

You are notified that the Contract times under the above contract will commence
to run on ___________________. By that date, you are to start performing your
obligations under the contract Documents. In accordance with Article 14 of the
Agreement the date of Substantial Completion is 14 MONTHS FOLLOWING THE START OF
CONCRETE WORK.

Before you may start any Work, you must deliver to the Owner (with copies to
other identified additional insureds) certificates of insurance which you are
required to purchase and maintain in accordance with the Contract Documents.

Also, before you may start any Work at the Site, you must

-------------------------------------------------------------------------
-------------------------------------------------------------------------
-------------------------------------------------------------------------
-------------------------------------------------------------------------
-------------------------------------------------------------------------

                                             Northern Growers Cooperative
                                             ----------------------------
                                             (Owner)

                                             By: /s/ Jim Peterson
                                                --------------------------------
                                             (Authorized Signature)

                                             Chairman
                                             -----------------------------------
                                             (Title)

                                       29<Page>

                                                                    EXHIBIT 10.2

                               LICENSING AGREEMENT
                         FOR ETHANOL PRODUCTION PROCESS

     THIS LICENSING AGREEMENT is made and entered into this 2nd day of November,
2000 by and between Broin and Associates, Inc., a South Dakota corporation
located at 2209 East 57th Street North, Sioux Falls, SD 57104, (hereinafter
referred to as "Licensor") and Northern Growers Cooperative, located at Post
Office Box 225, Milbank, South Dakota 57252, (hereinafter referred to as
"Licensee").

     WHEREAS, the Licensor is in the business of designing and building dry mill
ethanol plants; and

     WHEREAS, Licensor and Licensee have entered into a Construction Contract
dated as of even date herewith ("Construction Contract") to construct the dry
mill ethanol plant near Grant County, South Dakota ("Facility").

     WHEREAS, Licensee has chosen Licensor as Design/Builder to construct the
Facility because that Licensor has expertise in the design and construction of
ethanol plants; and

     WHEREAS, the Licensor possesses certain proprietary technology, design
information and operational information (hereinafter referred to as the
"Technology", as set forth in Exhibit A); and

     WHEREAS, the Licensee wishes to license a plant design and its associated
proprietary design and operational information from the Licensor; and

     WHEREAS, the parties hereto are entering into a Confidentiality and
Non-disclosure agreement which is attached hereto as Exhibit B.

     NOW, THEREFORE, in consideration of the foregoing mutual covenants and
agreements set forth herein, the parties agree as follows:

                                    AGREEMENT

1.0  THE TECHNOLOGY
     The "Licensor's Technology" refers to all proprietary rights, including
patents, copyrights, trade secrets, formulas, research data, processes, know-how
and specifications related to the Licensor' s design and construction of the
Facility identified in Exhibit A.

2.0  THE GRANT
     2.1  LICENSE
     Licensor grants to Licensee a nonexclusive license to utilize Licensor's
Technology to make, use and sell Ethanol and related co-products produced using
the Licensor's Technology only at the facility located near Grant County, South
Dakota.

                                        1
<Page>

     2.2  RESTRICTIONS
     The Licensee agrees that it will use the items listed in Exhibit A only in
relation to the operation and maintenance of the Facility.

3.0  COMPENSATION
     For and in consideration of the Licensee's execution of the Construction
Contract and for the payment of $100,000, which is included in the Design/Build
Contract Price Licensor executed this License Agreement with Licensee.

4.0  TERM OF AGREEMENT
     4.1  TERM
     This Agreement shall commence on the date that the Facility operates for
seven days as provided in the Process Guarantee attached to the Construction
Contract and continue for so long as the plant shall exist to use the Licensor's
Technology.

     4.2  BREACH
     Any party shall be in default under this Agreement if said party otherwise
fails to perform any of its obligations under this Agreement. In the event a
party is in default under this Agreement, the nondefaulting party shall have
such rights and remedies as may be available at law or in equity, including the
right of specific performance and injunctive relief.

5.0  LIMITATION OF LIABILITY
     In no event shall Licensor be liable to Licensee (or any other party) for
loss of profits or indirect, incidental, special, consequential, or other
similar damages arising out of any breach of this Agreement or obligations under
this Agreement.

6.0  INDEPENDENT CONTRACTOR
     For the purpose of this Agreement and all services to be provided
hereunder, both parties shall be, and shall be deemed to be, independent
contractors and not agents or employees of the other. Neither party shall have
authority to make any statements, representations or commitments of any kind, or
to take any action, that will be binding on the other party.

7.0  SEVERABILITY
     If any one or more of the provisions of this Agreement shall be held to be
invalid, illegal or unenforceable, such provision shall be enforced to the
maximum extent possible consistent with applicable law and the remaining
provisions of this Agreement shall remain in full force and effect.

8.0  ASSIGNABILITY
     This Agreement shall be assignable by either party upon mutual written
consent of the parties hereto. It is understood and agreed by Licensee that the
Licensing Agreement will need to be Assigned to a new owner prior to the
operation of the Facility by a new owner. Neither party shall unreasonably
withhold consent to said transfer.

9.0  ENTIRE AGREEMENT

                                        2
<Page>

     This instrument contains the entire agreement between the parties hereto
with respect to the subject matter hereof and supersedes any prior or
contemporaneous agreement.

10.0 MODIFICATIONS IN WRITING
     No change, modification, extension, termination or waiver of this
Agreement, or any of the provisions herein contained, shall be valid unless made
in writing and signed by a duly authorized representative of each party.

11.0 GOVERNING LAW
     The validity and interpretation of this Agreement and the legal relations
of the parties to it shall be governed by the laws of the State of South Dakota,
excepting that body of law related to conflict of laws.

12.0 CAPTIONS
     The captions are provided for convenience and are not to be used in
construing this Agreement.

13.0 CONSTRUCTION
     The parties agree that they have participated equally in the formation of
this Agreement and that the language herein should not be presumptively
construed against either of them.

14.0 CONFIDENTIALITY
     The parties acknowledge that Licensor will likely be providing confidential
information to Licensee during the term of this Agreement. In contemplation
thereof, the parties have signed Exhibit B--Confidentiality and Non-disclosure
Agreement--which is hereby incorporated by reference into this agreement.

15.0 DEFENSE OF THE TECHNOLOGY
     The Licensor, in granting the Licensee a license to said Licensor's
Technology as noted in this Agreement, will defend the Licensee in matters
pertaining to infringement of Licensor' s Technology including patents,
trademarks, copyrights, trade secrets, or any other proprietary rights owned or
controlled by third parties by reason of Licensee's manufacture, use, or sale of
Ethanol or ethanol co-generated products through Licensor's Technology. Licensee
shall inform Licensor immediately upon receipt of notice of any suit, actions,
claim or claims relating to patents, trademarks, copyrights, trade secrets, or
other proprietary rights having any bearing on said Licensor's Technology.
Should it so elect, Licensee, may, at its own expense, assume the control of and
join the Licensor in the defense of any such suit, actions, claim, or claims. In
the event that Licensor's Technology is found to infringe in any of the
aforementioned instances, Licensor will pay any costs to change the Technology
or to bring the Licensee into compliance with the holders of any proprietary
rights.

16.0 NOTICES
     All notices hereunder shall be effective if sent by first class mail,
postage prepaid, and shall be deemed given and received one business day after
deposit with the post office. Supplemental to the delivery methods described
above, the parties may also fax and E-mail said

                                        3
<Page>

notices. Notice sent by recognized express courier, certified or registered mail
shall be considered the official and binding notice. Notice shall be to:

     IF TO LICENSOR:            By:              JEFFREY S. BROIN
                                ITS:             C.E.O.
                                ADDRESS:         2209 EAST 57TH STREET NORTH
                                                 SIOUX FALLS, SD 57104

                                PHONE:           (605)965-2201
                                FAX:             (605)965-2203
                                E-MAIL:          jeffbroin@broin.com

     IF TO LICENSEE:            BY:              JIM PETERSON
                                ITS:             CHAIRMAN
                                ADDRESS:         POST OFFICE Box 225
                                                 MILBANK, SD 57104

     IN WITNESS WHEREOF, THE PARTIES HERETO HAVE EXECUTED THIS AGREEMENT ON THE
DATE AND YEAR FIRST ABOVE WRITTEN.

LICENSOR:                                        LICENSEE:

BROIN AND ASSOCIATES, INC.                       NORTHERN GROWERS COOPERATIVE

By:  /s/ Jeffrey S. Broin                        By:  /s/ Jim Peterson
   -------------------------------                  ---------------------------
   Its Chief Executive Officer                      Its Chairman - Jim Peterson
   Jeffrey S. Broin

                                        4
<Page>

                                    EXHIBIT A

THE FOLLOWING ITEMS SHALL CONSTITUTE THE LICENSOR'S TECHNOLOGY THAT LICENSOR IS
TRANSFERRING TO LICENSEE UNDER THIS AGREEMENT:

1.     ANY AND ALL PROCESS DIAGRAMS (A-1)

2.     ANY AND ALL PROCESS INFORMATION (A-2)

3.     ANY AND ALL MATERIAL AND ENERGY BALANCES (A-3)

4.     ANY AND ALL BLUEPRINTS (A-4)

5.     ANY AND ALL ISOMETRIC BLUEPRINTS (A-5)

6.     ANY AND ALL TRAINING MANUALS (A-6)

7.     ANY AND ALL OPERATIONS MANUALS (A-7)

8.     ANY AND ALL OPERATIONS VIDEO TAPES (A-8)

9.     ALL OTHER ITEMS AS MAY BE DISCLOSED FROM TIME TO TIME BY LICENSOR TO
       LICENSEE. SUCH ADDITIONAL MATERIALS WHICH SHOULD ALSO BE CONSIDERED
       TECHNOLOGY SHALL BE DETERMINED SOLELY BY LICENSOR.

                                        5
<Page>

                                    EXHIBIT B

                   CONFIDENTIALITY AND NONDISCLOSURE AGREEMENT

     This CONFIDENTIALITY AND NONDISCLOSURE AGREEMENT (this "Agreement") is made
and entered into as of this 2nd day of November, 2000 by and between Broin and
Associates, Inc., a South Dakota corporation, having a business address at 2209
East 57th Street North, Sioux Falls, South Dakota 57104 ("Discloser") and
Northern Growers Cooperative, having a business address at Post Office Box 225,
Milbank, South Dakota 57252("Recipient"), with reference to the following:

                                    RECITALS

     The following provisions form the basis for, and are hereby made a part of,
this Agreement:

     A. The parties to this Agreement are entering into discussions or
negotiations for the purpose of Financing, Design, Engineering, Construction,
Training and Startup and Operation of an ethanol production plant to be located
near Grant County, South Dakota.

     B. During discussions, negotiations, design, engineering, construction
oversight, DCS system configuration and installation, employee training, plant
startup, and on-going consulting, Discloser may disclose to Recipient certain
information Discloser deems confidential and proprietary.

                                    AGREEMENT

     NOW THEREFORE, in consideration of the promises and mutual covenants set
forth herein, the parties agree as follows:

1.0  DEFINITION OF CONFIDENTIAL INFORMATION.

     "CONFIDENTIAL INFORMATION" shall mean any and all information disclosed by
Discloser to Recipient relating to its business or technology that Discloser
designates as being confidential or which, under the circumstances surrounding
disclosure, should be treated as confidential, regardless of whether Discloser
provides such information to Recipient in tangible form or it is retained in the
intangible memory of Recipient. Confidential Information includes, for example
and without limitation, Discloser's confidential business or technical
information, such as financial information or data, marketing techniques and
material, business plans and strategies, business operation and systems, pricing
policies, information concerning employees, customers, and/or vendors, trade
secrets, discoveries, inventions, improvements, research, development, know-how,
designs, products, compositions, prototypes, biological or physical materials
and manufacturing processes.

     2.0    DISCLOSURE AND USE RESTRICTIONS

     2.1    PERMITTED USE AND DISCLOSURE.

                                        6
<Page>

     (i)    Recipient may only disseminate Confidential Information to those
            employees of Recipient who have:

                 (a)  a demonstrable need to know;
                 (b)  been informed of Recipient's obligations hereunder; and
                 (c)  are bound by an obligation of confidentiality to Recipient
                      at least as broad in scope as Recipient's obligations
                      hereunder.

     (ii)   Recipient may disseminate necessary portions of the Confidential
            Information to consultants, engineers or associates of Recipient for
            the sole purpose of making major modifications to or expanding the
            facility, but only after said consultants, engineers or associates
            have executed a Confidentiality and Nondisclosure Agreement with
            Discloser and Recipient has received a copy of this signed
            Agreement.

     A breach of such agreement shall be considered a material breach hereunder.

     2.2    RESTRICTIONS.
     Except as expressly provided in Section 2.1, Recipient shall not:

     (i)    Publish, disseminate or otherwise disclose or make available
            Confidential Information received hereunder to any person, firm or
            corporation without prior written consent of Discloser; or

     (ii)   Use Confidential Information for any purpose including, without
            limitation, selling, leasing, renting, licensing, marketing or
            otherwise distributing any Confidential Information or products,
            services, or processes embodying or derived from same. Recipient
            agrees to use the same degree of care that it uses to protect its
            confidential information of similar importance, to prevent any
            unauthorized disclosure of Confidential Information, but in no event
            less than a reasonable degree of care.

     (iii)  Modify or disseminate the Confidential Information or any part
            thereof without the express written consent of the Discloser.

     2.3    NO REVERSE ENGINEERING.
     Recipient shall not alter, modify, break-down, disassemble, or reverse
engineer materials or compositions containing or constituting Confidential
Information without the express prior written consent of Discloser.

     2.4    DISCUSSIONS.
     Recipient shall not publicize or disclose beyond those persons to whom
Confidential Information may be disclosed hereunder the existence and the terms
of this Agreement or the discussions that give rise to this Agreement and all
such information shall be deemed Confidential Information for all purposes
herein.

     2.5    NOTIFICATION OF UNAUTHORIZED USE OR DISCLOSURE.

                                        7
<Page>

     Recipient shall notify Discloser in writing immediately upon discovery of
any unauthorized use or disclosure of Confidential Information by Recipient or
its employees, consultants or associates, and will reasonably cooperate with
Discloser to regain possession of the Confidential Information and prevent its
further unauthorized use.

     3.0    NO EXPORT.

     Recipient shall not export, directly or indirectly, including but not
limited to export on the Internet or other network service, any Confidential
Information or technical data acquired by Recipient from Discloser under this
Agreement or any products utilizing any such data to any country for which the
U.S. Government or any agency thereof at the time of export requires an export
license or other Government approval without first obtaining such license or
approval.

     4.0    EXCEPTIONS.

Recipient shall have no obligation under this Agreement to maintain in
confidence any information which it can demonstrate:

     (i)    is in the public domain at the time of disclosure;
     (ii)   is in the possession of Recipient free of any obligation of
            confidence prior to the time of disclosure;
     (iii)  though originally, Confidential Information, subsequently becomes
            part of the public knowledge through no fault of Recipient, as of
            the date of its becoming part of the public knowledge;
     (iv)   though originally, Confidential Information, subsequently is
            rightfully received by Recipient without obligations of confidence
            from a third party who is free to disclose the information, as of
            the date of such third-party disclosure; or is independently
            developed by Recipient without the use of any Confidential
            Information, as of the date of such independent development.
            Recipient shall be entitled to disclose Confidential Information in
            response to a Court Order or as otherwise required by law; PROVIDED,
            HOWEVER; that Recipient notifies Discloser prior to such disclosure,
            and in no case more than ten (10) days after receiving such order to
            give Discloser time to contest such order.

5.0  OWNERSHIP OF CONFIDENTIAL INFORMATION

5.1  OWNERSHIP OF MATERIALS.
     Subject to the Construction Agreement and the License Agreement, all
materials furnished to Recipient by Discloser, including without limitation,
documents, drawings, apparatus, sketches, designs, biological or physical
materials, Confidential Information and Licensor's Technology as defined in the
License Agreement, and media upon which Confidential Information is stored or
recorded shall remain the property of Discloser, subject to the terms and
conditions of the License Agreement and Construction Agreement, Recipient will
return all such material, and all Copies thereof, to Discloser within a
reasonable time following Discloser's written request; PROVIDED, HOWEVER; that
Recipient may retain a single copy of the assignment data and any other
materials for

                                        8
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archival purposes. This Agreement does not give Recipient a license, implied or
express, or other rights to the Confidential Information.

     5.2    OWNERSHIP OF DERIVATIVE WORKS.
     Except as provided in the License Agreement and the Construction Contract,
any and all Derivatives of Confidential Information shall be the property of
Discloser. For purpose of this Agreement, "Derivatives" shall mean:

     (i)    for copyrightable or copyrighted material, any translation,
            abridgement, revision, or other form in which an existing work may
            be recast, transformed or adapted;
     (ii)   for patentable or patented material any improvement thereon; and for
            other material whether or not protected by trade secret, any new
            material derived from such existing trade secret material, including
            new material which may be protectable by copyright, patent and/or
            trade secret.

     6.0    TERMINATION.

     6.1    TERMINATION PRIOR TO CONCLUSION OF AGREEMENT.
     Upon written notice from one party to the other, this Agreement and the
parties' rights and obligations with respect hereto may be terminated solely as
to yet undisclosed Confidential Information; PROVIDED, HOWEVER; that this
Agreement and the parties' rights and obligations hereunder shall survive and
remain in full force and effect with respect to all information, Confidential
Information or otherwise, disclosed prior to the receipt of such written notice.

     7.0    MISCELLANEOUS

     7.1    ENTIRE AGREEMENT.
     This Agreement constitutes the entire Agreement between the parties hereto
regarding the Confidential Information disclosed thereunder and supersedes all
oral or written agreements, either entered prior to or contemporaneously with
this Agreement, concerning the Confidential Information. This Agreement may not
be modified except by written agreement dated subsequent to the date of this
Agreement and signed by both parties.

     7.2    ASSIGNMENT.
     Recipient shall not assign or transfer any rights or obligations under this
Agreement without the prior written consent of Discloser. Subject to the
limitations set forth in this Agreement, this Agreement will inure to the
benefit of and be binding upon the parties, their successors and assigns.

     7.3    PRESUMPTIONS.
     In construing the terms of this Agreement, no presumption shall operate in
either party's favor as a result of its counsel's role in drafting the terms or
provisions hereof.

     7.4    GOVERNING LAW.
     This Agreement shall be governed by and construed in accordance with the
laws of the State of South Dakota, excluding that body of law relating to choice
of law.

                                        9
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     7.5    SEVERABILITY; WAIVER.
     If any provision of this Agreement shall be held by a Court of Competent
Jurisdiction to be unenforceable, the remaining provisions shall remain in full
force and effect. A waiver by either of the parties hereto of any of the
covenants to be performed by the other party or any breach thereof shall not be
construed to be a waiver of any succeeding breach thereof or of any covenant
hereof contained.

     7.6    HOLD HARMLESS.
     The Recipient shall indemnify and save harmless the Discloser, its
officers, directors, consultants, employees, agents and assigns from and against
any liability, loss or damage arising out of Recipient's violation of any of the
Terms and Conditions of this Agreement.

     7.7    REMEDIES.
     In the event the Recipient breaches or threatens to breach any of the
covenants expressed herein, the damage to the Discloser will be great and
irreparable and difficult to quantify; therefore, the Discloser may apply to a
Court of Competent Jurisdiction for injunctive or other equitable relief to
restrain such breach or threat of breach, without the necessity of filing any
bond, and without disentitling the Discloser from any other relief in either law
or equity.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date
first above written.

Broin And Associates, Inc.               Northern Growers Cooperative
         (Discloser)                            (Recipient)

By:  /s/ Jeffrey S. Broin                By:  /s/ Jim Peterson
    ----------------------------------       -----------------------------------
       Its Chief Executive Officer -            Its Chairman - Jim Peterson
         Jeffrey S. Broin

                                       10

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