Document:

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                                                                     Exhibt 10.5

                               PURCHASE AGREEMENT

This Purchase Agreement ("Agreement"), dated as of the 7th day of February 2000,
is made by and between DANA CORPORATION, SPICER HEAVY AXLE & BRAKE DIVISION,
6938 Elm Valley Drive, Kalamazoo, Michigan, 49009 (hereinafter called "DANA"),
and NATIONWIDE PRECISION PRODUCTS CORPORATION, 200 Tech Park Drive, Rochester,
New York 14623 (hereinafter called "NPP").

WHEREAS, DANA is engaged in the design, manufacture and sale of axles, brakes
and other powertrain components for medium and heavy duty trucks; and

WHEREAS, NPP is in the business of performing machining services; and

WHEREAS, DANA desires to use NPP to perform machining services on purchased
components which are incorporated into DANA's axle products;

NOW, THEREFORE, in consideration of the obligations and premises set forth
herein, NPP and DANA agree as follows:

         1.0      SERVICES AND TERMS OF PURCHASE

                  1.1      During the term of this Agreement DANA agrees to
                           purchase from NPP and NPP agrees to supply to DANA,
                           machined parts (collectively referred to hereinafter
                           as "Parts") to be incorporated into DANA's axle
                           products.

                  1.2      The Parts that Nationwide will supply include all
                           part numbers listed on the attached Exhibit A.
                           Exhibit A may be revised from time to time to add or
                           delete Parts as agreed to by both parties.

                  1.3      The purchased components (such as raw castings,
                           forgings, bearings, hardware, etc.) which are to be
                           machined shall be purchased by NPP from suppliers and
                           at costs designated by DANA.

                  1.4      DANA shall issue a blanket purchase order or orders
                           to NPP for the Parts based on the agreed prices. DANA
                           shall order Parts from NPP by issuing releases
                           against such purchase orders, designating the mix and
                           volume of Parts, delivery date and agreed delivery
                           location.

                  1.5      Except as otherwise provided in this Agreement,
                           Dana's standard purchase order items and conditions
                           ("Standard Terms") in effect on the date a release is
                           issued shall apply to all purchases made by DANA. The
                           current Standard Terms are set out in the attached
                           Exhibit B. DANA may change these Standard Terms from
                           time to time without prior notice to NPP.

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*  This portion of the agreement has been omitted and filed with the
   Securities and Exchange Commission pursuant to a request for confidential
   treatment in accordance with Rule 406 of Regulation C.

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         2.0      PRICE

                  2.1      NPP's invoice price for each Part supplied to DANA
                           will be the sum (a) the price paid by NPP for the
                           purchased component, (b) a handling fee equal to *
                           of NPP's price for the purchased component(s), (c)
                           the price of the machining services performed on the
                           component.

                  2.2      The prices for all machining services performed
                           through December 31, 2001, will be those set out in
                           Exhibit A. The prices for machining services will be
                           reduced by * in the year 2000 from 2001 pricing. The
                           2002 prices will remain in effect for the remainder
                           of the term of this Agreement.

                  2.3      The machining services prices are based on NPP's
                           receiving aggregate annual revenue of * for
                           performing the services, including the * handling
                           fee, in 2001 and * including the *
                           handling fee, thereafter during the term of this
                           Agreement. These prices will be in effect as long as
                           NPP received +/- 10% of this value added billing
                           annually. If the value added billings are outside the
                           +/- 10%, DANA and NPP agree to reevaluate the pricing
                           structure. Parts over-and-above those listed in
                           Exhibit A may be added to meet revenue targets.

                  2.4      Charges for inbound freight to NPP from designated
                           DANA suppliers and any non-returnable containers will
                           be billed to DANA at cost.

                  2.5      NPP will procure all special gages, special cutting
                           tools and general gages required to perform the
                           machining services, at the best available prices, and
                           DANA will pay NPP * for the tooling, on or
                           after January 1, 2001, upon receipt of NPP's itemized
                           invoice for the tooling and subject to full
                           Production Part Approval Process ("PPAP") approval of
                           the machined Parts produced therefrom. The tooling
                           will be "Special Tooling" under Section 11 of the
                           Standard Terms. The tooling will belong solely to
                           DANA upon payment therefor and NPP will cooperate
                           with DANA in the filing of any UCC Form 1 or similar
                           documents evidencing its title. NPP will also procure
                           all necessary machine fixtures, at its own expense,
                           and these fixtures will belong solely to NPP.

         3.0      DELIVERY

                  3.1      Delivery and pricing of the Parts will be F.O.B NPP's
                           Plant in Rochester, NY.

                  3.2      DANA will provide reusable outbound shipping
                           containers for the Parts.

                  3.3      DANA and NPP will mutually develop a packaging
                           specification satisfactory to both parties.

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*  This portion of the agreement has been omitted and filed with the
   Securities and Exchange Commission pursuant to a request for confidential
   treatment in accordance with Rule 406 of Regulation C.

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                  3.4      DANA will select the freight carriers for inbound
                           shipments to NPP and outbound shipments from NPP to
                           DANA, negotiate the corresponding freight rates, and
                           reimburse NPP for all freight charges that NPP will
                           invoice separately.

         4.0      INVOICE AND PAYMENT TERMS

                  4.1      NPP will invoice DANA when the Parts are shipped.

                  4.2      The terms of payment for undisputed invoices are net
                           thirty (30) days from the receipt of the invoice,
                           with a 1/2% discount off the invoice price for
                           payments made within ten (10) days.

         5.0      TERM AND CANCELLATION

                  5.1      This Agreement will be in effect from the date first
                           written above through December 31, 2006, unless
                           cancelled sooner as provided herein or in the
                           Standard Terms. If the parties wish to extend this
                           Agreement beyond the initial term for one-year
                           renewal terms, they will commence renewal
                           negotiations by July 1, 2005.

                  5.2      Section 18 of the Standard Terms (or any equivalent
                           provision in a subsequent version of the Standard
                           Terms providing for the termination by DANA for
                           convenience) will not apply to this Agreement and
                           DANA will not exercise any of its cancellation rights
                           as long as NPP meets all performance criteria
                           outlined in this Agreement.

                  5.3      The notice and cure period provided in Section 19 of
                           the Standard Terms (or any equivalent provision in a
                           subsequent version of the Standard Terms) will be
                           ninety (90) days.

                  5.4      In the event either NPP or DANA (1) ceases to
                           function, (2) liquidates, dissolves, sells
                           substantially all of its assets, (3) undergoes
                           significant management realignment or change, (4)
                           merges or consolidates and is not the surviving
                           corporation, the other party shall have the right to
                           cancel this Agreement immediately by giving written
                           notice.

         6.0      OBLIGATIONS OF NPP

                  In performance of its obligations under this Agreement, NPP
                  agrees that it will:

                  6.1      PPAP all Parts prior to November 30, 2000. The PPAP
                           process will commence no later than July 1, 2000. NPP
                           is not responsible for the PPAP approval of purchased
                           components.

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*  This portion of the agreement has been omitted and filed with the
   Securities and Exchange Commission pursuant to a request for confidential
   treatment in accordance with Rule 406 of Regulation C.

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                  6.2      Maintain adequate facilities and personnel to meet
                           its obligations hereunder, including, but not limited
                           to, development of an inventory control system to
                           assure proper storage of purchased components and
                           finished Parts and prompt handling of inquiries,
                           orders and shipments.

                  6.3      Perform the machining services according to DANA's
                           Supplier Quality Manual (11/89 Rev. 2) and Spicer
                           Heavy Axle & Brake Division's QSR- 109 (October
                           1999).

                  6.4      Provide evidence of conformance to DANA's quality
                           assurance procedures as reasonably requested and
                           permit DANA or its designee upon reasonable advance
                           notice to audit NPP's quality assurance procedures
                           and review pertinent inspection records.

                  6.5      Not make modifications to the purchased components
                           except in accordance with DANA's Parts specifications
                           and/or written instructions.

                  6.6      Notify DANA promptly of all problems relating to the
                           machining services or NPP's other obligations to be
                           performed under this Agreement if such problems will
                           impact delivery or quality of the Parts to be shipped
                           to DANA.

                  6.7      Maintain such records relating to machining services
                           provided under this Agreement as DANA may reasonably
                           require.

                  6.8      Deliver the Parts in accordance with DANA's releases,
                           subject to the following provisions:

                           a.       NPP is committed to 100% on time delivery,
                                    but in no event will be less than 98% on
                                    time, based on DANA's providing NPP with a
                                    rolling 4 (four) week firm schedule and a 5
                                    (five) month planning forecast.

                           b.       If DANA permanently cancels its orders for
                                    any Parts, it will reimburse NPP for the
                                    costs of components for those Parts which
                                    NPP purchased within the forecast period and
                                    which are not returnable.

                           c.       DANA will assure that quantities of outbound
                                    packaging are sufficient to meet delivery
                                    schedules.

                           d.       Lack of performance by the freight carrier
                                    or the purchased components supplier without
                                    fault of NPP will not be considered non
                                    performance by NPP.

                  6.9      Maintain high quality standards that include but are
                           not limited to the following:

                           a.       Maintain quality systems compliant with
                                    QS-9000.

                           b.       Achieve a 200 parts per million ("PPM")
                                    maximum target.

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*  This portion of the agreement has been omitted and filed with the
   Securities and Exchange Commission pursuant to a request for confidential
   treatment in accordance with Rule 406 of Regulation C.

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                  6.10     Maintain an inventory bank of 5 (five) days for high
                           volume Parts and 10 (ten) days for low volume Parts.
                           These banks may vary +50%. The high - versus low
                           volume designations will be mutually agreed upon
                           prior to January 1, 2001.

                  6.11     Provide an inventory of the tooling that is owned by
                           DANA under Section 2.5.

                  6.12     Cooperatively work with DANA on an exit program to
                           transition this business to another supplier or
                           DANA's internal operations on the expiration,
                           termination or cancellation of this Agreement.

         7.0      DANA'S OBLIGATIONS

                  In the performing of its obligations under this Agreement,
                  DANA agrees that it will:

                  7.1      Provide NPP with the most current print revisions
                           (including all specifications) available for the
                           Parts at the commencement of this Agreement and from
                           time to time thereafter as changes are made. In
                           addition, if there are any revisions to the Part
                           prints or specifications, DANA agrees to purchase all
                           obsolete components and finished Parts in inventory
                           at NPP, not to exceed a reasonable quantity and mix
                           consistent with DANA's firm schedules and NPP's
                           customary lead times for purchased components, prior
                           to changeover.

                  7.2      Own the tooling used by third parties to manufacture
                           the components that are purchased by NPP hereunder
                           for machining and be responsible for any and all
                           design changes, repairs and replacements for such
                           tooling.

                  7.3      Provide facility space at no cost to NPP for the
                           inventory bank described in Section 6.10, should DANA
                           and NPP mutually agree to have the bank located
                           outside NPP's facilities.

                  7.4      Provide all returnable drainage and packaging
                           necessary for outbound shipments of Parts from NPP to
                           DANA.

                  7.5      Assist NPP in resolving any quality issues with the
                           purchased component suppliers should NPP be unable to
                           resolve them directly and promptly.

                  7.6      Consider NPP as a preferred source for machining
                           services and afford NPP the opportunity to quote any
                           new or replacement business.

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*  This portion of the agreement has been omitted and filed with the
   Securities and Exchange Commission pursuant to a request for confidential
   treatment in accordance with Rule 406 of Regulation C.

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         8.0      CONFIDENTIALITY

                  8.1      The confidentiality provisions of the Standard Terms
                           attached hereto as Exhibit B will apply mutually to
                           both parties during the term of this Agreement and
                           will not be superseded by any subsequent version of
                           the Standard Terms without both parties' written
                           consent.

                  8.2      All materials, including without limitation
                           documents, drawings, models, apparatus, sketches,
                           designs and lists, furnished to NPP by DANA shall
                           remain the property of DANA and shall be returned to
                           DANA, erased and/or destroyed promptly at DANA's
                           request, as well as all copies made thereof.

         9.0      MISCELLANEOUS

                  9.1      NOTICES. All notices, requests, consents and other
                           communications hereunder shall be deemed to have been
                           duly given hereunder if in writing and, upon receipt
                           when delivered by hand or sent by courier, facsimile
                           transmission or telex, or three (3) calendar days
                           after being mailed by first class mail, postage
                           prepaid, in each case addressed as follows:

            To DANA:                            To NPP:

            Dana Corporation                    Nationwide Precision Products
            Spicer Heavy Axle & Brake Div.      200 Tech Park Drive
            6938 Elm Valley Drive               Rochester, New York 14623
            Kalamazoo, Michigan 49009
            Attn: Purchasing Manager            Attn: Vice President - Sales

                           or such address as the addressee party may have
                           previously designated in writing by notice to the
                           other party, and such notice or communication shall
                           be deemed to have been given as of the date so
                           delivered or mailed.

                  9.2      SUCCESSORS AND ASSIGNS; OTHER PARTIES. This Agreement
                           and the parties' respective rights and obligations
                           hereunder are not assignable by NPP or DANA without
                           the prior written consent of the other party.

                  9.3.     ENTIRE AGREEMENT. This Agreement, together with the
                           Exhibits attached hereto, constitutes the entire
                           agreement between the parties about the subject
                           matter hereof and supersedes all prior agreements,
                           representations, warranties, statements, promises,
                           information, arrangements and understandings, whether
                           oral or written, expressed or implied with respect to
                           this subject. No modification or waiver of this
                           Agreement shall be binding upon any party unless in
                           writing and signed by or on behalf of the party
                           against which the modification or waiver is asserted.

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*  This portion of the agreement has been omitted and filed with the
   Securities and Exchange Commission pursuant to a request for confidential
   treatment in accordance with Rule 406 of Regulation C.

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                  9.4      SEVERABILITY. Any term or provision of this Agreement
                           which is held to be invalid or unenforceable shall be
                           ineffective to the extent of such invalidity or
                           unenforceability without rendering invalid or
                           unenforceable the remaining terms and provisions of'
                           this Agreement.

                  9.5      WAIVER. Neither the failure nor any delay on the part
                           of NPP or DANA to exercise any right, power or
                           privilege hereunder shall operate as a waiver
                           thereof, nor shall any single or partial exercise of
                           any such right, power or privilege preclude any other
                           or further exercise thereof, or the exercise of any
                           other right, power or privilege available to NPP or
                           DANA at law or in equity.

                  9.6      GOVERNING LAW. This Agreement shall in all respects
                           be interpreted, construed and governed by and in
                           accordance with the laws of the State of Ohio,
                           without recourse to the conflicts of laws provisions
                           thereof, and any action relating to this Agreement
                           shall be brought exclusively in a state or federal
                           court in the State of Ohio.

IN WITNESS WHEREOF, NPP and DANA have caused this Agreement to be duly executed
as of the date first above written.

NATIONWIDE PRECISION                    DANA CORPORATION,
PRODUCTS CORPORATION                    SPICER HEAVY AXLE & BRAKE DIVISION

By:       /S/  RONALD S. RICOTTA        By:       /S/  NORM BOISVERT
   --------------------------------        ---------------------------------
      Ronald S. Ricotta                       Norm Boisvert
      President & CEO                         VP & General Manager

Date:       02/08/00                    Date:        02/09/00
   --------------------------------        ---------------------------------

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*  This portion of the agreement has been omitted and filed with the
   Securities and Exchange Commission pursuant to a request for confidential
   treatment in accordance with Rule 406 of Regulation C.

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                                    EXHIBIT A
                                        *

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*  This portion of the agreement has been omitted and filed with the
   Securities and Exchange Commission pursuant to a request for confidential
   treatment in accordance with Rule 406 of Regulation C.

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                                    EXHIBIT B

                   PURCHASE ORDER FOR MATERIALS AND COMPONENTS

                              TERMS AND CONDITIONS

1. CONTRACT, ACCEPTANCE. This Order and the documents incorporated or referred
to herein constitute the entire contract between the parties for the Goods
ordered and supersede any prior written or oral agreements between the parties
therefor. Seller's written acknowledgment of this Order or Seller's delivery of
any Goods hereunder will constitute Seller's acceptance of these terms and
conditions. Any reference herein to Seller's quotation is for informational
purposes only and does not constitute Buyer's acceptance of any terms and
conditions contrary or supplemental to those set out herein.

2. SELLER'S STATUS, ASSIGNMENT. Seller is an independent contractor and not an
employee or agent of Buyer. Seller may not assign or subcontract this Order or
any of its rights or obligations hereunder without Buyer's prior written
consent.

3. CHANGES TO ORDER. Buyer may change this Order in any respect at any time on
written notice to Seller. If any change made by Buyer materially affects
Seller's costs of producing the Goods, the purchase price of the affected Goods
will be equitably adjusted and this Order amended accordingly.

4. PACKING AND SHIPMENT. Seller will pack and ship the Goods in accordance with
Buyer's instructions, without charge for packaging or handling unless otherwise
specified. All Goods will be packed to comply with applicable common carrier
requirements and so as to secure the best available freight rates. All U.S.
shipments will be accompanied by a fully completed bill of lading in the form
prescribed by the National Motor Freight Classification and by a packing list
showing the number and description of items contained therein. Buyer's name and
Order number will be plainly marked on all Terms and Conditions packages, bills
of lading, packing slips, and other shipping documents and on Seller's invoices.
Buyer's count or weight will be final and conclusive for all shipments.

5. DELIVERIES. Seller will deliver all Goods in accordance with Buyer's
instructions. Buyer may reject any or all Goods shipped in excess of quantities
ordered or in advance of schedule and may either return the same to Seller at
Seller's expense or retain the same and invoice Seller for Buyer's incidental
costs of handling and/or storage. Buyer will not process invoices for Goods
shipped in advance of the schedule until the scheduled delivery date. Buyer may
change scheduled deliveries at any time and will reimburse Seller for Seller's
reasonable, documented incremental costs due to such changes.

6. INSPECTIONS, DEFECTS AND NONCONFORMITIES. Buyer may inspect and/or test the
Goods at reasonable times and places and in reasonable quantities, at its own
expense; provided that Seller will, at no charge, make its premises available
for such purposes and will provide all necessary assistance to make such
inspections and/or tests safe and convenient. No inspections and/or tests by
Buyer hereunder will relieve Seller of its obligation to make full and adequate
inspections and/or tests of the Goods. If any Goods are found to be defective or
not in conformity with Buyer's specifications or requirements, Buyer may reject
them, in whole or in part, or require Seller to repair or

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*  This portion of the agreement has been omitted and filed with the
   Securities and Exchange Commission pursuant to a request for confidential
   treatment in accordance with Rule 406 of Regulation C.

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replace them at Seller's sole expense. If Buyer returns any rejected Goods,
Seller will reimburse Buyer for the purchase price and all freight, handling,
insurance and other incidental costs incurred by Buyer. If Seller fails to
promptly repair or replace any defective or nonconforming Goods as requested by
Buyer, Buyer may repair or replace the same and invoice Seller for Buyers costs
of repair or replacement and any incidental costs.

7. QUALITY. In performing this Order, Seller will comply with the quality
compliance and quality assurance standards and procedures set out in the Quality
System Manual and the OS-9000 standards published by the International
Organization for Standardization.

8. CONFIDENTIAL INFORMATION. Except as required by law, as reasonably necessary
to perform this Order, or with Buyer's prior written consent. Seller will keep
confidential, at all times, all information, drawings, specifications and data
furnished by Buyer and/or derived or developed by Seller in connection with the
performance of this Order. Seller will not divulge such confidential information
or use it (directly or indirectly) for its own benefit or for the benefit or any
other party or make copies of such confidential information or permit copies to
be made. The foregoing confidentiality obligations do not apply to information
known by Seller at the time it is disclosed by Buyer, to information lawfully
obtained by Seller from a third party entitled to disclose it, and to
information which is or later becomes public knowledge other than through
disclosure by Seller.

9. INTELLECTUAL PROPERTY RIGHTS, PATENT WARRANTY. If Buyer furnishes the design
for the Goods or reimburses Seller for the cost of designing the Goods, Buyer
will own all intellectual property rights relating to that design. Conversely,
if Seller furnishes the design for the Goods or bears the sole cost of designing
the Goods, Seller will own all intellectual property rights relating to the
design. In either case, the owner of the intellectual property rights warrants
to the other party that the design of the Goods will not infringe upon or
contribute to the infringement of any U.S. or foreign patent or patent right.

10. PRODUCT WARRANTY. Seller warrants to Buyer, its customers and end users,
that Seller has good title to the Goods, free and clear of all liens; that the
Goods are free from defects in material and workmanship; that the Goods are
merchantable; conform fully with all specifications, drawings and/or samples
furnished by Buyer (or furnished by Seller and accepted by Buyer); that the
Goods are fit and sufficient for their intended uses; and that the Goods conform
to all applicable Federal Motor Vehicle Safety Standards issued under the
National Traffic and Motor Vehicle Safety Act of 1966, as amended.

11. SPECIAL TOOLING. "Special Tooling" means all special dies, jigs, fixtures,
drawings, molds, patterns, templates and gages acquired or manufactured by
Seller under this Order for use in manufacturing or assembling Goods which are
proprietary to Buyer, excluding any standard or perishable tooling or gages.
Special tooling separately itemized in this Order will be Buyer's property upon
Buyer's full payment of the purchase price for same; provided, however, that
Buyer will have no payment obligation until it has accepted such tooling or the
first run of Goods manufactured or assembled therewith. Seller will furnish
Buyer with an itemized list of such tooling and will maintain adequate cost
records for the same, which records will be available for review or audit

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*  This portion of the agreement has been omitted and filed with the
   Securities and Exchange Commission pursuant to a request for confidential
   treatment in accordance with Rule 406 of Regulation C.

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by Buyer. If Seller fails to maintain such cost records, Buyer will be obligated
to pay Seller solely the fair market value of the special tooling, regardless of
the purchase price stated herein. Seller will be responsible for all loss or
damage to such tooling and for all taxes, assessments, and similar charges
levied with respect to or upon such tooling while in Seller's possession. Seller
will mark and number such tooling with Buyer's name and the number of the part
made therewith to permit accurate identification of same at all times and will
segregate the same from other tooling in its possession to the extent feasible.
Seller will repair, maintain and keep such tooling in good working condition and
replace the same at its own expense as necessary. Seller will use such tooling
exclusively for the production of Goods for Buyer and for no other use. Upon
completion, cancellation, or termination of this Order, Seller will hold such
tooling and any operation sheets or process data necessary to show the use
thereof, at no charge, pending Buyer's instructions with respect to removal or
disposition at Buyer's expense.

12. LEGAL COMPLIANCE. Seller warrants that it will comply with all applicable
federal, state and local laws, regulations, ordinances, and executive, judicial
or administrative orders in the performance of this order. Seller will furnish
Buyer with certificates of compliance in such form as Buyer may request, from
time to time, and will promptly furnish to the proper person or entity any
reports which are properly required of Seller by law, regulation, ordinance, or
order.

13. HAZARDOUS MATERIALS. Seller will property classify, describe, package, mark,
label and provide Material Safety Data Sheets (MSDS) for all Goods to be shipped
hereunder. Seller will prepare all such Goods for transportation in accordance
with any applicable state or federal laws or regulations. Seller will indemnify
and hold harmless Buyer from any claims penalties or damages incurred by Buyer
as a result of any Goods received from Seller not in accordance therewith.

14. COUNTRY OF ORIGIN INFORMATION. Upon request, Seller agrees to provide Buyer
with documentation that establishes the country of origin of the Goods,
including where applicable, affidavits of manufacture, NAFTA certificates of
origin or other documentation that Buyer may reasonably require.

15. INDEMNIFICATION. Seller will defend and indemnity Buyer and its customers
and end users from and against all claims, suits, damages, losses and expenses
arising from (a) any personal injury, death or property loss or damage caused by
Seller's negligent or willful acts or omissions in performing this Order, (b)
Seller's breach of any warranty contained herein, or (c) Seller's breach of or
default under this Order.

16. INSURANCE. While performing this Order, Seller will maintain insurance
coverage at its own cost in amounts and with insurers satisfactory to Buyer for
workers' compensation (unless self-insured), public liability (including
contractual liability and products liability) and automobile liability. At
buyer's request, Seller will furnish certificates of insurance evidencing such
coverage (which certificates will name Buyer as an additional insured and
provide that the coverage will not be cancelable or subject to limit reductions
without 15 day's written notice to Buyer) and/or evidence of self-

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*  This portion of the agreement has been omitted and filed with the
   Securities and Exchange Commission pursuant to a request for confidential
   treatment in accordance with Rule 406 of Regulation C.

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insurance for workers' compensation. Seller's compliance with these insurance
requirements will not relieve Seller of its defense and indemnification
obligations under Paragraph 15.

17. ALLOCATION. In the event of a partial failure of Seller's ability to supply
the entire quantity of Goods purchased hereunder, Seller will first meet all of
Buyer's requirements hereunder prior to any allocation among customers under
12-615 of the Uniform Commercial Code.

18. TERMINATION FOR CONVENIENCE. Buyer may terminate this Order for convenience
at any time on written notice to Seller. Upon termination, Buyer will be liable
to Seller solely for (a) unpaid invoices for Goods shipped, and (b) Seller's
reasonable, documented costs for raw materials, work-in-process and finished
Goods (subject to the volumes specified in this Order or any firm releases
hereunder) that cannot be canceled without penalty or sold in the general trade;
provided that Seller has delivered the same to Buyer.

19. CANCELLATION FOR CAUSE. To the extent permitted by law, Buyer may cancel
this Order without liability to Seller at any time on written notice to Seller
in the event of Seller's insolvency, Seller's filing of a voluntary petition in
bankruptcy, the appointment of a receiver or trustee for Seller, Seller's
execution of an assignment for the benefit of creditors, or other comparable
event. In addition, Buyer may cancel this Order without liability to Seller at
any time on 30 days' written notice to Seller if Seller breaches any provision
of this Order (or Buyer anticipates such breach); provided, that the
cancellation will be void if Seller cures the breach (or provides adequate
assurances of performance) within the 30-day notice period.

20. BINDING EFFECT. The obligations of the parties hereunder will be binding on
their respective directors, officers, employees, agents, subcontractors, and
duly authorized successors and assigns (if any).

21. CUMULATIVE REMEDIES, WAIVER. Buyer's remedies herein are cumulative and in
addition to any other or further remedies available at law or equity. Buyer's
waiver of any right herein will not constitute a subsequent waiver of the same
right or any other right provided herein.

22. GOVERNING LAW. This Order will be interpreted and enforced under the laws of
the state of Ohio (including, without limitation, the provisions of the Uniform
Commercial Code as adopted by the State of Ohio), without recourse to the
conflicts of laws provisions thereof. In no event will the provisions of the
U.N. Convention on the Sale of Goods apply to this order.

23. DISPUTE RESOLUTION. Any dispute arising connection with the interpretation,
performance or non-performance, or enforceability of this Order will be resolved
by prompt good faith negotiation between the parties. If the parties are unable
to resolve any such dispute, either party may request that it be resolved
through binding arbitration conducted under the Commercial Rules of the American
Arbitration Association in Toledo, Ohio, U.S.A. or elsewhere as the parties may
mutually agree; provided, that neither party may institute an arbitration
proceeding hereunder unless it has given written notice 30 days prior thereto to
the other party, stating its intent to do so and specifying the basis therefor
in reasonable detail. Any award, order or judgment made or issued pursuant to
arbitration hereunder will be deemed final and may be entered and enforced in
any court of competent jurisdiction. The parties hereby agree to submit to the
jurisdiction of such

-----------
*  This portion of the agreement has been omitted and filed with the
   Securities and Exchange Commission pursuant to a request for confidential
   treatment in accordance with Rule 406 of Regulation C.

                                        4
<PAGE>

court for purposes of enforcement of such award, order or judgment. In any
arbitration proceeding hereunder, the arbitrator(s) are authorized (but not
obligated) to award reasonable attorneys' fees and other arbitration-related
costs to the prevailing party. Any arbitration proceeding hereunder will be
conducted on a confidential basis. Except by mutual written agreement, no
arbitration arising out of or related to this Order will include by
consolidation, joinder, or any other means, any person or entity not a party
hereto.

24. YEAR 2000 COMPLIANCE. Seller warrants that all software and hardware
furnished under this Agreement (including all enhancements, upgrades,
customizations, modifications and maintenance) will be Year 2000 compliant.
Seller agrees to defend and indemnify Dana from and against all claims, losses,
damages, and costs arising from Seller's Breach of this warranty, regardless of
any limitations of remedies contained elsewhere in this agreement or in any
other agreement between the parties.

                             EXEMPTION CERTIFICATION

       (PURCHASE FOR FURTHER MANUFACTURE UNDER THE INTERNAL REVENUE CODE)

Dana Corporation hereby certifies that it is a manufacturer or producer of
entries taxable under the Internal Revenue Code and holds certificate of
Registry #34-43-8104-0 issued by the District Director of Internal Revenue at
Cleveland, Ohio, and that the article or articles specified in the accompanying
order will be used by him as materials in the manufacture of production of, or
as a component part of, an article or articles enumerated in the code, to be
manufactured or produced by him.

It is understood that for all the purposes of such taxes, the Buyer will be
considered the manufacturer or producer of the articles purchased hereunder, and
(except as specifically provided by law) must pay tax on resale or use,
otherwise than as specified above, of the articles purchased hereunder. It is
further understood that the fraudulent use of this Certificate no secure
exemption will subject the Buyer and all guilty parties to revocation of the
privilege of purchasing tax free and to a fine of not more than $10,000 or to
Imprisonment for not more than five years or both together with costs of
prosecution.

February 1, 2000

-----------
*  This portion of the agreement has been omitted and filed with the
   Securities and Exchange Commission pursuant to a request for confidential
   treatment in accordance with Rule 406 of Regulation C.

                                        5<PAGE>

                                                                  EXECUTION COPY

                            STOCK PURCHASE AGREEMENT

         THIS STOCK PURCHASE AGREEMENT (this "Agreement"), is made as of
March 18, 2000, by and between RENTECH, INC., a corporation organized under
the laws of the State of Colorado, with headquarters located at 1331 17th
Street, Suite 720, Denver, Colorado 80202 (the "Company") and FOREST OIL
CORPORATION, a corporation organized under the laws of the State of New York,
with headquarters located at 1600 Broadway, Suite 2200, Denver, Colorado
80202 (the "Buyer").

                            BACKGROUND CIRCUMSTANCES.

         A. The Company and the Buyer are executing and delivering this
Agreement in reliance upon the exemption from securities registration
afforded by the provisions of Regulation D ("Regulation D") as promulgated by
the United States Securities and Exchange Commission (the "SEC") under the
Securities Act of 1933, as amended (the "1933 Act");

         B. The Buyer desires to purchase from the Company, and the Company
desires to sell to the Buyer, for the amount and upon the terms and
conditions stated in this Agreement, in a closing or closings as herein
described, 1,000,000 shares of the Company's common stock, par value $.01 per
share ("Common Stock"), an option to purchase 2,000,000 shares of Common
Stock having an exercise price of $1.25 per share and expiring December 31,
2001, and an option to purchase 1,000,000 shares of Common Stock having an
exercise price of $5.00 per share and expiring December 31, 2004. The options
are granted in separate agreements executed by the parties concurrently with
this Agreement (the "Option Agreements").

         NOW, THEREFORE, in consideration of their respective promises
contained herein and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged by the parties, the Company and
the Buyer hereby agree as follows:

         SECTION 1.        PURCHASE AND SALE OF SECURITIES.

         (a) PURCHASE. The Buyer hereby agrees to purchase from the Company,
and the Company agrees to sell to the Buyer, 1,000,000 shares of Common Stock
("Stock"), an option to purchase 2,000,000 shares of Common Stock having an
exercise price of $1.25 per share and expiring December 31, 2001 ("2001
Option"), and an option to purchase 1,000,000 shares of Common Stock having
an exercise price of $5.00 per share and expiring December 31, 2004 ("2004
Option" and, together with the Stock and the 2001 Option, the "Securities").
The 2001 Option and the 2004 Option (collectively, the "Options") shall be
subject to the terms and conditions of the Option Agreements.

<PAGE>

         (b) PURCHASE PRICE. The purchase price for the Stock and the 2001
Option is $600,000. The purchase price for the 2004 Option is $50,000. The
aggregate purchase price for the Securities is $650,000 (the "Purchase
Price").

                                       2
<PAGE>

         (c) THE CLOSING. The date of the Closing shall be March 20, 2000.
The Purchase Price shall be delivered to the Company by cashier's check or by
wire transfer of immediately available funds in United States Dollars. At the
Closing, the Company shall deliver certificates representing the Stock, duly
issued and executed by the authorized officers on behalf of the Company, to
the Buyer, and the Company and Buyer shall sign and the Company shall deliver
to Buyer the Option Agreements and the Registration Rights Agreement (as
defined below).

         SECTION 2.        BUYER'S REPRESENTATIONS AND WARRANTIES.

         The Buyer understands, agrees with, and represents and warrants to
the Company with respect to its purchase hereunder, that:

         (a) INVESTMENT PURPOSES; COMPLIANCE WITH 1933 ACT. The Buyer is
purchasing the Securities for its own account for investment only and not
with a view towards, or in connection with, the public sale or distribution
thereof, except pursuant to sales registered under or exempt from the 1933
Act. The Buyer is not purchasing the Securities for the purpose of covering
short sale positions in Common Stock established on or prior to the date of
the Closing. The Buyer agrees to offer, sell or otherwise transfer the
Securities only (i) in accordance with the terms of this Agreement and the
Option Agreements, as the same may be applicable, and (ii) pursuant to
registration under the 1933 Act or to a transaction for which registration
under the 1933 Act is not required. Except as set forth in Section 2(f) of
that certain Registration Rights Agreement dated as of the date hereof by and
among the Company, Buyer and Anschutz Investment Company (the "Registration
Rights Agreement") the Buyer does not by its representations contained in
this Section 2(a) agree to hold the Securities for any minimum or other
specific term and reserves the right to dispose of the Securities at any time
pursuant to a registration statement or in accordance with an exemption from
registration under the 1933 Act, in all cases in accordance with applicable
state and federal securities laws.

         (b) ACCREDITED INVESTOR STATUS. The Buyer is an "accredited
investor" as that term is defined in Rule 501(a) of Regulation D. The Buyer
has such knowledge and experience in financial and business matters that it
is capable of evaluating the merits and risks of an investment made pursuant
to this Agreement. The Buyer is aware that it may be required to bear the
economic risk of an investment made pursuant to this Agreement for an
indefinite period of time, and is able to bear such risk for an indefinite
period.

         (c) RELIANCE ON EXEMPTIONS. The Buyer understands the Securities are
being offered and sold to it in reliance on specific exemptions from the
registration requirements of the applicable United States federal and state
securities laws and that the Company is relying upon the truth and accuracy
of, and the Buyer's compliance with, the representations, warranties,
acknowledgments, understandings, agreements and covenants of the Buyer set
forth herein in order to determine the availability of such exemptions and
the eligibility of the Buyer to acquire the Securities.

                                       3
<PAGE>

         (d) INFORMATION. The Buyer and its advisors, if any, have been
furnished with the Company's Form 10-KSB as filed with the SEC for the fiscal
year ended September 30, 1999, the Company's Form 10-QSB for the fiscal
quarter ended December 31, 1999, and the Company's private placement
memorandum dated October 12, 1999 that was not prepared for the offer and
sale of the Securities. The Buyer and its advisors, if any, have been
afforded the opportunity to ask questions of the Company and have received
complete and satisfactory answers to any such inquiries. The Buyer
understands that its investment in the Securities involves a high degree of
risk. The Buyer has sought such accounting, legal and tax advice as it has
considered necessary to an informed investment decision with respect to the
investment made pursuant to this Agreement.

         (e) NO GOVERNMENT REVIEW. The Buyer understands that no United
States federal or state agency or any other government or governmental agency
has passed on or made any recommendation or endorsement of the Securities or
the fairness or suitability of the investment in the Securities, nor have
such authorities passed upon or endorsed the merits of the offering of the
Securities.

         (f) TRANSFER OR RESALE. The Buyer understands that: (i) the
Securities have not been and are not being registered under the 1933 Act or
any state securities laws, and that the Stock may not be offered for sale,
sold, assigned or transferred unless either (x) subsequently registered
thereunder or (y) the Buyer shall have delivered to the Company, if so
requested by the Company, a legal opinion reasonably satisfactory to the
Company's outside counsel to the effect that the securities to be sold,
assigned or transferred may be sold, assigned or transferred pursuant to an
exemption from such registration, (ii) the sale, assignment or transfer of
the Options or any shares of Common Stock issuable upon the exercise thereof
are subject to certain restrictions as set forth in the Option Agreements and
(iii) except as set forth in the Registration Rights Agreement, neither the
Company nor any other person is under any obligation to register such
securities under the 1933 Act or any state securities laws or to comply with
the terms and conditions of any exemption thereunder.

         (g) LEGEND. The Buyer understands that unless the resale of the
shares of the Stock or Common Stock underlying the Options (collectively, the
"Subject Shares") has been registered under the 1933 Act or may be sold by
the Buyer pursuant to paragraph (k) of Rule 144 (as amended, or any
applicable rule which operates to replace said Rule) promulgated under the
1933 Act ("Rule 144"), the stock certificates representing the Common Stock
will bear a restrictive legend (the "Legend") in substantially the following
form:

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT
BE PLEDGED, SOLD, OFFERED FOR SALE, TRANSFERRED, OR OTHERWISE DISPOSED OF IN
THE ABSENCE OF REGISTRATION UNDER OR EXEMPTION FROM SUCH ACT AND ALL
APPLICABLE STATE SECURITIES LAWS.

The Legend will be removed and the Company will issue certificates without
the Legend to the transferee of the applicable Subject Shares upon which the
Legend is stamped, if, unless otherwise required by state securities laws,
(a) such Subject Shares were resold pursuant to and in accordance

                                       4
<PAGE>

with the registration of same under the 1933 Act, or (b) in connection with a
resale transaction, such holder provides the Company an opinion by counsel
reasonably acceptable to the Company's outside counsel, to the effect that a
public sale, assignment or transfer of the Common Stock may be made without
registration under the 1933 Act.

         (h) AUTHORIZATION; ENFORCEMENT. This Agreement has been duly and
validly authorized, executed and delivered by the Buyer and is a valid and
binding agreement of the Buyer enforceable against Buyer in accordance with
its terms, subject as to enforceability to general principles of equity and
to bankruptcy, insolvency, moratorium, and other similar laws affecting the
enforcement of creditors' rights generally.

         (i) NO BROKERS; NO GENERAL SOLICITATION. Buyer has taken no action
that would give rise to any claim by any person for brokerage commissions,
finder's fees or similar payments relating to this Agreement and the
transactions contemplated hereby. Buyer acknowledges that no broker was
involved with respect to the transactions contemplated hereby.

         SECTION 3.        REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

         The Company understands, agrees with, and represents and warrants to
the Buyer that:

         (a) ORGANIZATION AND QUALIFICATION: REPORTING COMPANY STATUS. The
Company and its subsidiaries are corporations duly organized and existing in
good standing under the laws of the respective jurisdictions in which they
are incorporated and have the requisite corporate power to own their
properties and to carry on their business as now being conducted. Each of the
Company and its subsidiaries are duly qualified as a foreign corporation to
do business and is in good standing in every jurisdiction in which the nature
of the business conducted by it makes such qualification necessary. The
Company has registered its Common Stock pursuant to Section 12 of the
Securities Exchange Act of 1934, as amended (the "1934 Act") and sales of its
Common Stock are reported by the National Quotation Bureau, Inc. on the Over
the Counter Bulletin Board.

         (b) AUTHORIZATION; ENFORCEMENT. (i) The Company has the requisite
corporate power and authority to enter into and perform this Agreement and
the other agreements contemplated hereby or referred to herein (collectively,
the "Agreements") and to issue and sell the Securities in accordance with the
terms hereof, (ii) the execution, delivery and performance of the Agreements
by the Company and the consummation by it of the transactions contemplated
hereby have been duly authorized by the Company's Board of Directors and no
further consent or authorization of the Company, its Board of Directors, or
its stockholders is required, (iii) the Agreements and, on the date of the
Closing, the Securities sold at the Closing, have been duly and validly
authorized, executed and delivered by the Company, and (iv) the Agreements
constitute the valid and binding obligations of the Company enforceable
against the Company in accordance with their respective terms, except as such
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium, liquidation or similar laws relating to, or
affecting, generally, the enforcement of creditors' rights and remedies or by
other equitable principles of general application. The Company

                                       5
<PAGE>

(and its legal counsel) have examined this Agreement and is satisfied in its
sole discretion that this Agreement and the accompanying Exhibits, Schedules
and the Addenda, if any, are in accordance with Regulation D.

         (c) CAPITALIZATION. As of December 31, 1999, the authorized Common
Stock of the Company consists of 100,000,000 shares of Common Stock of which
52,619,372 shares were issued and outstanding. All of such outstanding shares
have been validly issued and are fully paid and nonassessable. No shares of
Common Stock are subject to preemptive rights or any other similar rights or
any liens or encumbrances, whether or not contingent. Except as disclosed in
the Company's Form 10-KSB for the year ended September 30, 1999, and its Form
10-QSB for the fiscal quarter ended December 31, 1999, (i) there are no
outstanding options, warrants, scrip, rights to subscribe to, calls or
commitments of any character whatsoever relating to, or securities or rights
convertible into, any shares of capital stock of the Company or any of its
subsidiaries, or arrangements by which the Company or any of its subsidiaries
is or may become bound to issue additional shares of capital stock of the
Company or any of its subsidiaries, and (ii) there are no outstanding debt
securities. The Company has made available to the Buyer true and correct
copies of the Company's Articles of Incorporation, as amended, as in effect
on the date hereof ("Certificate of Incorporation"), and the Company's
Bylaws, as in effect on the date hereof ("Bylaws").

         (d) ISSUANCE OF SECURITIES. The Stock is all duly authorized and
reserved for issuance, and shall be validly issued, fully paid and
non-assessable, free from all taxes, liens and charges with respect to the
issue thereof, and will not be subject to preemptive rights or other similar
rights of stockholders of the Company.

         (e) NO REGISTRATION REQUIREMENTS. Neither the Company, nor any of
its affiliates, nor any person acting on its or their behalf, has directly or
indirectly made any offers or sales of any security or solicited any offers
to buy any security under circumstances which would prevent the parties
hereto from consummating the sale contemplated hereby pursuant to an
exemption from registration under the 1933 Act and specifically in accordance
with the provisions of Regulation D. The sale contemplated hereby is exempt
from the registration requirements of the 1933 Act, assuming the accuracy of
the representations and warranties contained herein of the Buyer.

         (f) NO CONFLICTS. The execution, delivery and performance of this
Agreement by the Company and the consummation by the Company of the
transactions contemplated hereby will not (i) result in a violation of the
Articles of Incorporation or Bylaws or (ii) conflict with, or constitute a
default (or an event which with notice or lapse of time or both would become
a default) under, or give to others any rights of termination, amendment,
acceleration or cancellation of, any material agreement, indenture or
instrument to which the Company or any of its subsidiaries is a party, or
result in a violation of any law, rule, regulation, order, judgment or decree
(including federal and state securities laws and regulations) applicable to
the Company or any of its subsidiaries or by which any property or asset of
the Company or any of its subsidiaries is bound or affected. Neither the
Company nor any of its subsidiaries is in violation of its Articles of
Incorporation or other organizational documents, and neither the Company nor
any of its subsidiaries are in default (and no event has occurred which, with
notice or lapse of time or both, would put the Company or any

                                       6
<PAGE>

of its subsidiaries in default) under, nor has there occurred any event
giving others (with notice or lapse of time or both) any rights of
termination, amendment, acceleration or cancellation of, any material
agreement, indenture or instrument to which the Company or any of its
subsidiaries is a party. The business of the Company and its subsidiaries is
not being conducted, and shall not be conducted so long as the Buyer owns any
of the Securities, in violation of any law, ordinance or regulation of any
governmental entity. Except as specifically contemplated by this Agreement
and as required under the 1933 Act and any applicable state securities laws,
the Company is not required to obtain any consent, authorization or order of,
or make any filing or registration with, any court or governmental agency in
order for it to execute, deliver or perform any of its obligations under this
Agreement, in accordance with the terms hereof.

         (g) SEC DOCUMENTS; FINANCIAL STATEMENTS. Since January 1, 1997, the
Company has timely filed all reports, schedules, forms, statements and other
documents required to be filed by it with the SEC pursuant to the reporting
requirements of the Securities Exchange Act of 1934, as amended (the "1934
Act") (all of the foregoing filed prior to the date hereof and all exhibits
included therein and financial statements and schedules hereto and documents
(other than exhibits) incorporated by reference therein, being hereinafter
referred to as the "SEC Documents"). The Company has made available to the
Buyer true and complete copies of the SEC Documents. As of their respective
dates, the SEC Documents complied in all material respects with the
requirements of the 1934 Act and the rules and regulations of the SEC
promulgated thereunder applicable to the SEC Documents. Except as set forth
in the financial statements of the Company included in the SEC Documents and
a finder's fee claim by John M. King IV, the Company has no liabilities,
contingent or otherwise, other than (i) liabilities subsequent to the date of
such financial statements incurred in the ordinary course of business and
consistent with past practice and (ii) obligations under contracts and
commitments incurred in the ordinary course of business and consistent with
past practice and not required under generally accepted accounting principles
to be reflected in such financial statements, in each case of clause (i) and
(ii) next above which, individually or in the aggregate, are not material to
the financial condition, business, operations, properties, operating results
or prospects of the Company. Except for the finder's fee claim of John M.
King IV, the SEC Documents contain a description of the general nature of all
material undischarged written and oral contracts, agreements, leases or other
instruments to which the Company or any subsidiary is a party or by which the
Company or any subsidiary is subject (each a "Contract"). None of the
Company, its subsidiaries or, to the best of the Company's knowledge, any of
the other parties thereto, is in breach or violation of any Contract. No
event, occurrence or condition exists which, with the lapse of time, the
giving of notice, or both, or the happening of any further event or
condition, would become a default by the Company or its subsidiaries
thereunder which would, individually or in the aggregate with any other such
defaults by the Company or its subsidiaries, have a Material Adverse Effect.
"Material Adverse Effect" means any material adverse effect on the
operations, properties or financial condition of the Company and its
subsidiaries taken as a whole.

         (h) ABSENCE OF CERTAIN CHANGES. Since December 31, 1999, there has
been no material adverse change and no material adverse development in the
business, properties, operation, financial condition, results of operations
or prospects of the Company.

                                       7
<PAGE>

         (i) ABSENCE OF LITIGATION. Except as specifically disclosed in the
SEC Documents, there is no action, suit, proceeding, inquiry or investigation
before or by any court, public board or body pending or, to the knowledge of
the Company, threatened against or affecting the Company.

         (j) NO BROKERS; NO GENERAL SOLICITATION. The Company has taken no
action that would give rise to any claim by any person for brokerage
commissions, finder's fees or similar payments relating to this Agreement and
the transactions contemplated hereby. The Company acknowledges that no broker
was involved with respect to the transactions contemplated hereby.

         (k) INTELLECTUAL PROPERTY. (i) As used herein, "Intellectual
Property" shall mean all inventions (whether patentable or unpatentable and
whether or not reduced to practice), all improvements thereto, and all
patents, patent applications and patent disclosures, together with all
reissuances, continuations, continuations-in-part, revisions, extensions and
reexaminations thereof, trademarks, service marks, trade dress, logos, trade
names and corporate names, together with all translations, adaptations,
derivations and combinations thereof and including all goodwill associated
therewith, and all applications, registrations and renewals in connection
therewith, copyrightable works, all copyrights and all applications,
registrations and renewals in connection therewith, mask works and all
applications, registrations and renewals in connection therewith, trade
secrets and confidential business information (including ideas, research and
development, know-how, formulas, compositions, manufacturing and production
processes and techniques, technical data, designs, drawings, specifications,
customer and supplier lists, pricing and cost information and business and
marketing plans and proposals), proprietary software, proprietary rights and
copies and tangible embodiments thereof (in whatever form or medium).

                  (ii) Except as set forth on SCHEDULE 3(k)(ii) hereto, the
Company and its subsidiaries own or are licensed or otherwise have the right
to use, without payment to any other person, the Intellectual Property used
in or necessary for each of their businesses, as presently conducted. Neither
the Company nor any of its subsidiaries has entered into any agreement that
restricts or affects its use and/or location of use of any of its
Intellectual Property.

                  (iii) Without limiting the scope of the Company's warranty
and representation in sub-paragraph (ii) above, (w) each trademark
registration included in the Intellectual Property exists and is owned by the
Company or any of its subsidiaries and has been maintained in good standing;
(x) each patent and application included in the Intellectual Property exists,
is owned by or licensed to the Company or one of its subsidiaries, and has
been maintained in good standing; (y) each copyright registration included in
the Intellectual Property exists and is owned by the Company or one of it
subsidiaries; and (z) to the Company's knowledge, no other firm, corporation,
association or person claims the right to use in connection with similar or
related goods and in any geographic area, any mark, logo, name, symbol,
device, or slogan which is identical or confusingly similar to any of the
trademarks included in the Intellectual Property or which could serve to
dilute the distinctiveness of such trademarks.

                  (iv) The Company and its subsidiaries' ownership and/or use
of Intellectual Property in their businesses, as presently conducted, does
not conflict with, or result in any violation

                                       8
<PAGE>

of, or default (with or without notice or lapse of time or both) under, or
give rise to a right of termination, cancellation or acceleration of any
obligation, or result in any loss of a material benefit under, or the
creation of any lien in or upon any of the properties or assets of the
Company or its subsidiaries under, any contract between the Company and any
person or, to the Company's knowledge, any other intellectual property rights
of any other person, except for any such conflict, violation, default, right
of termination, cancellation acceleration, loss of material benefit or
creation of any lien which would not have a material adverse effect with
respect to the Company.

                  (v) The Company has not received any communications
alleging that the Company or one of its subsidiaries has violated or, by
conducting its business, would infringe upon the intellectual property rights
of any other person. The Company is not aware of any infringement or
misappropriation by others of any of its or its subsidiaries' Intellectual
Property.

         (l) PERMITS AND LICENSES. The Company holds all material licenses,
permits and other authorizations of any agency, public, regulatory or other
governmental authority necessary to conduct its business as now being
conducted or, under currently applicable statutes, rules, ordinances,
regulations or other laws, to continue to conduct its business as now being
conducted. Such licenses, permits and other authorizations held by the
Company are valid and in full force and effect, and there are no legal
actions pending or, to the knowledge of the Company, threatened that could
result in the termination, impairment or nonrenewal thereof.

         (m) OTHER INFORMATION. No representation or warranty of the Company
in this Agreement, nor any statement, certificate or other document furnished
or to be furnished by the Company to the Buyer pursuant to this Agreement,
nor any exhibits or schedules hereto, contains any untrue statement of a
material fact, or omits to state a material fact required to be stated
therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading.

         SECTION 4.        COVENANTS.

         (a) BEST EFFORTS. Each party shall use its best efforts timely to
satisfy each of the conditions to be satisfied by it as provided in Sections
6 and 7 of this Agreement.

         (b) SECURITIES LAWS. The Company agrees to timely file a Form D (or
equivalent form required by applicable state law) with respect to the
Securities if and as required under Regulation D and applicable state
securities laws. The Company shall, on or before the date of the Closing,
take such action as is necessary to sell the Securities being sold to the
Buyer under applicable securities laws of the United States, and shall if
specifically so requested provide evidence of any such action so taken to the
Buyer on or prior to the Closing Date.

         (c) REPORTING STATUS. So long as the Buyer beneficially owns any of
the Securities, the Company shall file all reports required to be filed with
the SEC pursuant to the 1934 Act on a timely

                                       9
<PAGE>

basis, and the Company shall not terminate its status as an issuer required
to file reports under the 1934 Act even if the 1934 Act or the rules and
regulations hereunder would permit such termination.

         (d) USE OF PROCEEDS. The Company will use the proceeds from the sale
of the Securities for the Company's internal working capital purposes,
including costs and expenses of the Company's business operations and payment
of certain outstanding obligations of the Company, research and development,
and to the extent deemed advisable by the Company, for the purchase of new
technologies for use by the Company and its subsidiaries, and for the
purchase of additional subsidiaries and the development and marketing of
their technologies.

         (e) RESERVATION OF SHARES. The Company shall at all times have
authorized, and reserved for the purpose of issuance, a sufficient number of
shares of Common Stock to provide for the issuance of the Securities and any
Common Stock issuable upon the exercise or conversion thereof.

         (f) PROSPECTUS DELIVERY REQUIREMENT. The Buyer understands that the
1933 Act requires under certain circumstances the delivery of a prospectus
relating to the Common Stock in connection with any resale thereof, and the
Buyer shall comply with any applicable prospectus delivery requirements of
the 1933 Act in connection with any such sale.

         (g) INTENTIONAL ACTS OR OMISSIONS. Neither party shall intentionally
perform any act which if performed, or omit to perform any act which if
omitted to be performed, would prevent or excuse the performance of this
Agreement or any of the transactions contemplated hereby.

         SECTION 5.        REMOVAL OF LEGEND.

         The Legend will be removed and the Company will issue certificates
without the Legend to the transferee of the applicable Subject Shares upon
which the Legend is stamped, if, unless otherwise required by state
securities laws, (a) such Subject Shares were resold pursuant to and in
accordance with the registration of same under the 1933 Act, or (b) in
connection with a resale transaction, such holder provides the Company an
opinion by counsel reasonably acceptable to the Company's outside counsel, to
the effect that a public sale, assignment or transfer of the Common Stock may
be made without registration under the 1933 Act. The Buyer agrees that its
resale of all Common Stock, shall be made only pursuant to an effective
registration statement and to deliver a prospectus in connection with such
sale, or in a transaction in which registration is not required under the
registration requirements of the 1933 Act. In the event the Legend is removed
from any certificate for Common Stock or any Common Stock is issued without
the Legend and thereafter the effectiveness of a registration statement
covering the sales of such Common Stock is suspended or the Company
determines that a supplement or amendment thereto is required by applicable
securities laws, then upon reasonable advance notice to the holder of such
Security, the Company shall be entitled to require that the Legend be placed
upon any such Security which cannot then be sold pursuant to an effective
registration statement or with respect to which the opinion referred to in
clause (b) next above has not been rendered, which Legend shall be removed
when such Common

                                       10
<PAGE>

Stock may be sold pursuant to an effective registration statement or at such
time as such holder provides the opinion with respect thereto described in
clause (b) next above.

         SECTION 6.        CONDITIONS TO THE COMPANY'S OBLIGATION TO SELL.

         The obligation of the Company hereunder to sell the Securities at
the Closing is subject to the satisfaction, on or before the date of the
Closing as described herein, of each of the following conditions, provided
that these conditions are for the Company's sole benefit and may be waived by
the Company at any time in its sole discretion:

         (a) The parties shall have executed this Agreement, and the parties
shall have delivered executed originals of the documents to the other party.

         (b) The Buyer shall have delivered to the Company the Purchase Price
for the Securities, as provided in this Agreement.

         (c) The representations and warranties of the Buyer shall be true
and correct in all material respects as of the date made and as of the date
of the Closing as though made at that time (except for representations and
warranties that refer to a specific date), and the Buyer shall have
performed, satisfied and complied in all material respects with the
covenants, agreements and conditions required by this Agreement to be
performed, satisfied or complied with by the Buyer at or prior to the date of
the Closing.

         (d) No statute, rule, regulation, executive order, decree, ruling or
injunction shall have been enacted, entered, promulgated or endorsed by any
court or governmental authority of competent jurisdiction or any self
regulatory organization having authority over the matters contemplated hereby
which restricts or prohibits the consummation of any of the transactions
contemplated herein.

         SECTION 7.        CONDITIONS TO THE BUYER'S OBLIGATION TO PURCHASE.

         The obligation of the Buyer to purchase the Securities is subject to
the satisfaction, on or before the date of the Closing, of each of the
following conditions, provided that these conditions are for the sole benefit
of the Buyer and may be waived by the Buyer at any time in its sole
discretion:

         (a) The parties shall have executed this Agreement and the
Registration Rights Agreement, and the parties shall have delivered executed
originals of the respective documents to the other party.

         (b) The Company shall have delivered to the Buyer the Securities
(including the Option Agreements executed on behalf of the Company), as
provided in this Agreement.

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<PAGE>

         (c) The representations and warranties of the Company shall be true
and correct in all material respects as of the date made and as of the date
of the Closing as though made at that time (except for representations and
warranties that refer to a specific date), and the Company shall have
performed, satisfied and complied in all material respects with the
covenants, agreements and conditions required by this Agreement to be
performed, satisfied or complied with by the Company at or prior to the date
of the Closing. The Buyer may require a certificate, executed by the Chief
Executive Officer or a Vice President of the Company, dated as of the date of
the Closing, to the foregoing effect.

         (d) No statute, rule, regulation, executive order, decree, ruling or
injunction shall have been enacted, entered, promulgated or endorsed by any
court or governmental authority of competent jurisdiction or any self
regulatory organization having authority over the matters contemplated hereby
which restricts or prohibits the consummation of any of the transactions
contemplated herein.

         (e) An opinion of counsel to the Company, in form and substance
acceptable to the Buyer.

         SECTION 8.        GOVERNING LAW; MISCELLANEOUS.

         (a) GOVERNING LAW. This Agreement shall be governed by and
interpreted in accordance with the laws of the State of Colorado without
regard to the principles of conflict of laws. In the event of any litigation
regarding the interpretation or application of this Agreement, the parties
irrevocably consent to jurisdiction in any of the state or federal courts
located in the State of Colorado and waive their rights to object to venue in
any such court, regardless of the convenience or inconvenience thereof to any
party. Service of process in any civil action relating to or arising out of
this Agreement (including also all Exhibits or Addenda hereto, if any), or
the transactions contemplated herein may be accomplished in any manner
provided by law. The parties hereto agree that a final, non-appealable
judgment in any such suit or proceeding shall be conclusive and may be
enforced in other jurisdictions by suit on such judgment or in any other
lawful manner.

         (b) COUNTERPARTS. This Agreement may be executed in two or more
identical counterparts, all of which shall be considered one and the same
agreement and shall become effective when counterparts have been signed by
each party and signature pages from such counterparts have been delivered to
the other party. In the event any signature page is delivered by facsimile
transmission (which the parties agree is an acceptable form of delivery), the
party using such means of delivery shall cause two (2) additional originally
executed signature pages to be physically delivered to the other party within
three (3) business days of the execution and delivery hereof.

         (c) HEADINGS; GENDER, ETC. The headings of this Agreement are for
convenience of reference and shall not form a part of, or affect the
interpretation of this Agreement. As used herein, the masculine shall refer
to the feminine and neuter, the feminine to the masculine and neuter, and the
neuter to the masculine and feminine, as the context may require. As used
herein, unless the

                                       12
<PAGE>

context clearly requires otherwise, the words "herein," "hereunder" and
"hereby," shall refer to this entire Agreement and not only to the Section or
paragraph in which such word appears. If any date specified herein falls upon
a Saturday, Sunday or public or legal holidays, the date shall be construed
to mean the next business day following such Saturday, Sunday or public or
legal holiday. For purposes of this Agreement, a "business day" is any day
other than a Saturday, Sunday or public or legal holiday.

         (d) SEVERABILITY. If any provision of this Agreement shall be
invalid or unenforceable in any jurisdiction, such invalidity or
unenforceability shall not affect the validity or enforceability of the
remainder of this Agreement in that jurisdiction or the validity or
enforceability of any provision of this Agreement in any other jurisdiction.

         (e) ENTIRE AGREEMENT; AMENDMENTS. This Agreement and the instruments
referenced herein contain the entire understanding of the parties with
respect to the matters covered herein and therein and, except as specifically
set forth herein or therein, neither the Company nor the Buyer makes any
representation, warranty, covenant or undertaking with respect to such
matters. No provision of this Agreement may be waived or amended other than
by an instrument in writing signed by the party to be charged with
enforcement.

         (f) NOTICES. Any notices required or permitted to be given under the
terms of this Agreement shall be sent by U. S. Mail or delivered personally
or by courier or via facsimile (if via facsimile, to be followed within three
(3) business days by an original of the notice document via U.S. Mail or
courier) and shall be effective five (5) days after being placed in the mail,
if mailed, certified or registered, return receipt requested, or upon
receipt, if delivered personally or by courier or by facsimile, in each case
properly addressed to the party to receive the same. The addresses for such
communications shall be:

If to the Company:        Rentech, Inc.
                          1331 17th Street, Suite 720
                          Denver, Colorado 80202
                          Telephone: (303) 298-8008
                          Facsimile: (303) 298-8010
                          Attention: Mr. Ronald C. Butz, Vice President & COO

If to the Buyer, at the address on the signature page of this Agreement. Each
party shall provide written notice to the other party of any change in
address.

         (g) SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon and
inure to the benefit of the parties and their respective successors. Neither
party shall assign this Agreement or any rights or obligations hereunder
without the prior written consent of the other party (which consent shall not
be unreasonably withheld or delayed), except that Buyer may assign its rights
hereunder in whole or in part to (i) any entity or person that directly, or
indirectly through one or more intermediaries, is controlled by, or is under
common control with Buyer (an "Affiliate") or (ii) any director, officer,
employee, representative or agent of Buyer or any of its Affiliates. Any

                                       13
<PAGE>

assignee of the Buyer shall be an "accredited investor" as that term is
defined in Rule 501(a) of Regulation D, and no assignment shall be made by
the Buyer unless it is made in accordance with any applicable securities laws.

         (h) NO THIRD PARTY BENEFICIARIES. This Agreement is intended for the
benefit of the parties hereto and their respective permitted successors and
permitted assigns, and is not for the benefit of, nor may any provision
hereof be enforced by, any other person.

         (i) SURVIVAL. The representations and warranties of the Company and
the Buyer contained in Sections 2 and 3 and the agreements and covenants set
forth in Sections 4 shall survive the Closing of the purchase and sale of
Securities purchased and sold hereby.

         (j) FURTHER ASSURANCE. Each party shall do and perform, or cause to
be done and performed, all such further acts and things, and shall execute
and deliver all such other agreements, certificates, instruments and
documents, as the other party may reasonably request in order to carry out
the intent and accomplish the purposes of this Agreement and the consummation
of the transactions contemplated hereby.

         (k) REMEDIES. No provision of this Agreement providing for any
specific remedy to a party shall be construed to limit such party to the
specific remedy described, and any other remedy that would otherwise be
available to such party at law or in equity shall be so available. Nothing in
this Agreement shall limit any rights a party may have with any applicable
federal or state securities laws with respect to the transactions
contemplated hereby.

                            [Signature Page Follows]

                                       14
<PAGE>

         IN WITNESS WHEREOF, the Buyer and the Company have caused this Stock
Purchase Agreement to be duly executed as of the date first written above.

Rentech, Inc.                                      Forest Oil Corporation

By:/s/ Dennis L. Yakobson                          By:/s/ David H. Keyte
   ----------------------------                       --------------------------
   Dennis L. Yakobson                                 David H. Keyte
   President                                          Executive Vice President
                                                      Forest Oil Corporation
                                                      1600 Broadway, Suite 2200
                                                      Denver, Colorado  80202

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