Document:

<PAGE>

THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR ANY STATE SECURITIES LAWS. THEY MAY NOT BE SOLD OR OFFERED FOR SALE
IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THE SECURITIES UNDER
SAID ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR THE AVAILABILITY OF AN
EXEMPTION FROM REGISTRATION UNDER SAID ACT AND ANY APPLICABLE STATE SECURITIES
LAWS.

                                     WARRANT
                       To Purchase Class B Common Stock of
                     EXE TECHNOLOGIES, INC. (the "Company")
                  DATE OF INITIAL ISSUANCE: As of May 31, 2000

         THIS CERTIFIES THAT for value received, i2 TECHNOLOGIES, INC. ("i2") or
its registered permitted assigns (together with i2, hereinafter called the
"Holder") is entitled to purchase from the Company, at any time during the Term
of this Warrant, One Hundred and Ten Thousand (110,000) shares of Class B Common
Stock, $0.01 par value, of the Company, at the Warrant Price, payable as
provided herein. The exercise of this Warrant shall be subject to the
provisions, limitations and restrictions herein contained, and may be exercised
in whole or in part.

SECTION 1. DEFINITIONS.

         For all purposes of this Warrant, the following terms shall have the
meanings indicated:

         COMMON STOCK - shall mean and include the Company's authorized Class B
Common Stock, $0.01 par value, or any other class of common stock of the Company
into which the Class B Common Stock is converted, exchanged or substituted in
any recapitalization or other capital reorganization of the Company or otherwise
in accordance with the Company's Certificate of Incorporation.

         EXCHANGE ACT - shall mean the Securities Exchange Act of 1934, as
amended.

         SECURITIES ACT - the Securities Act of 1933, as amended.

         TERM OF THIS WARRANT - shall mean the period beginning on the date of
initial issuance hereof and ending on the earlier of (a) August 11, 2004 or (b)
twenty-four (24) months after the closing of EXE's initial public offering
pursuant to a firm commitment underwriting.

         WARRANT PRICE - $4.00 per share, subject to adjustment in accordance
with Section 6 hereof.

<PAGE>

         WARRANTS - this Warrant and any other Warrant or Warrants issued in
exchange for this Warrant.

         WARRANT SHARES - shares of Common Stock purchased or purchasable by the
Holder of this Warrant upon the exercise hereof.

SECTION 2. VESTING. All of the Warrant Shares subject to this Warrant shall vest
and become exercisable immediately as of the date of initial issuance.

SECTION 3. EXERCISE OF WARRANT.

         3.1 PROCEDURE FOR EXERCISE OF WARRANT. To exercise this Warrant in
whole or in part (but not as to any fractional share of Common Stock), the
Holder shall deliver to the Company at its office referred to in Section 14
hereof at any time and from time to time during the Term of this Warrant: (i)
the Notice of Exercise in the form attached hereto; (ii) cash, certified or
official bank check payable to the order of the Company, wire transfer of funds
to the Company's account, or evidence of any indebtedness of the Company to the
Holder (or any combination of any of the foregoing) in the amount of the Warrant
Price for each share being purchased; (iii) an executed Stockholders Agreement
in the form attached in Exhibit A hereto (the "Stockholders Agreement"); and
(iv) this Warrant.

In the event of any exercise of the rights represented by this Warrant, a
certificate or certificates for the shares of Common Stock so purchased,
registered in the name of the Holder or such other name or names of permitted
transferees under this Agreement as may be designated by the Holder, shall be
delivered to the Holder hereof within a reasonable time after the rights
represented by this Warrant shall have been so exercised; and, unless this
Warrant has expired, a new Warrant representing the number of shares (except a
remaining fractional share), if any, with respect to which this Warrant shall
not then have been exercised shall also be issued to the Holder hereof within
such time. The person in whose name any certificate for shares of Common Stock
is issued upon exercise of this Warrant shall for all purposes be deemed to have
become the holder of record of such shares on the date on which the Warrant was
surrendered (along with the documentation required by this Section 3.1) and
payment of the Warrant Price and any applicable taxes was made, irrespective of
the date of delivery of such certificate, except that, if the date of such
surrender and payment is a date when the stock transfer books of the Company are
closed, such person shall be deemed to have become the holder of such shares at
the close of business on the next succeeding date on which the stock transfer
books are open. The Company represents that the stock transfer books of the
Company will not be closed so as to unreasonably interfere with the timely
exercise of the Warrant by the Holder in accordance with the terms of the
Warrant.

         3.2 TRANSFER RESTRICTION LEGEND. (a) Each certificate for Warrant
Shares shall bear the legends specified in the Stockholders Agreement (and any
additional legend required by (i) any applicable state securities laws and (ii)
any securities exchange upon which such Warrant Shares may, at the time of such
exercise, be listed). Any certificate issued at any time in exchange or
substitution for any certificate bearing such legend (except a new certificate
issued

                                      2
<PAGE>

upon completion of a public distribution under a registration statement of
the securities represented thereby) shall also bear such legends unless, in
the opinion of counsel for the holder thereof (which counsel shall be
reasonably satisfactory to counsel for the Company) the securities
represented thereby are not, at such time, required by law to bear such
legends.

SECTION 4. COVENANTS AS TO COMMON STOCK. The Company covenants and agrees that
all shares of Common Stock that may be issued upon the exercise of the rights
represented by this Warrant will, upon issuance, be validly issued, fully paid
and nonassessable, and free from all taxes, liens and charges with respect to
the issue thereof. The Company further covenants and agrees that the Company
will have authorized and reserved, free from preemptive rights, a sufficient
number of shares of Common Stock to provide for the exercise of the rights
represented by this Warrant.

SECTION 5. ADJUSTMENT OF NUMBER OF SHARES. Upon each adjustment of the Warrant
Price as provided in Section 6, the Holder shall thereafter be entitled to
purchase, at the Warrant Price resulting from such adjustment, the number of
shares (calculated to the nearest whole share) obtained by multiplying the
Warrant Price in effect immediately prior to such adjustment by the number of
shares purchasable pursuant hereto immediately prior to such adjustment and
dividing the product thereof by the Warrant Price resulting from such
adjustment.

SECTION 6. ADJUSTMENT OF WARRANT PRICE. The Warrant Price shall be subject to
adjustment from time to time as follows:

           (i)     If, at any time during the Term of this Warrant, the
number of shares of Common Stock outstanding is increased by a stock dividend
payable in shares of Common Stock or by a subdivision or split-up of shares of
Common Stock, then, following the record date fixed for the determination of
holders of Common Stock entitled to receive such stock dividend, subdivision or
split-up, the Warrant Price shall be appropriately decreased so that the
aggregate Warrant Price shall remain the same, but the number of shares of
Common Stock issuable upon the exercise hereof shall be increased in proportion
to such increase in outstanding shares.

           (ii)    If, at any time during the Term of this Warrant, the
number of shares of Common Stock outstanding is decreased by a combination of
the outstanding shares of Common Stock, then, following the record date for such
combination, the Warrant Price shall appropriately increase so that the
aggregate Warrant Price shall remain the same, but the number of shares of
Common Stock issuable upon the exercise hereof shall be decreased in proportion
to such decrease in outstanding shares.

           (iii)   All calculations under this Section 6 shall be made to
the nearest cent or to the nearest whole share, as the case may be.

           (iv)    Whenever the Warrant Price shall be adjusted as provided
in Section 6, the Company shall prepare a statement showing the facts requiring
such adjustment and the Warrant Price that shall be in effect after such
adjustment. The Company shall cause a copy of such statement to be sent by mail,
first class postage prepaid, to each Holder of this Warrant at its, his or her
address appearing on the Company's records. Where appropriate, such copy may be
given

                                      3
<PAGE>

in advance and may be included as part of the notice required to be mailed
under the provisions of subsection (vi) of this Section 6.

           (v)     Adjustments made pursuant to clauses (i) and (ii) above
shall be made on the date such dividend, subdivision, split-up, combination or
distribution, as the case may be, is made, and shall become effective at the
opening of business on the business day next following the record date for the
determination of stockholders entitled to such dividend, subdivision, split-up,
combination or distribution.

           (vi)    In the event the Company shall propose to take any action
of the types described in clauses (i) or (ii) of this Section 6, the Company
shall forward, at the same time and in the same manner, to the Holder of this
Warrant such notice, if any, which the Company shall give to the holders of
capital stock of the Company.

           (vii)   In any case in which the provisions of this Section 6
shall require that an adjustment shall become effective immediately after a
record date for an event, the Company may defer until the occurrence of such
event issuing to the Holder of all or any part of this Warrant which is
exercised after such record date and before the occurrence of such event the
additional shares of capital stock issuable upon such exercise by reason of the
adjustment required by such event over and above the shares of capital stock
issuable upon such exercise before giving effect to such adjustment exercise;
provided, however, that the Company shall deliver to such Holder a due bill or
other appropriate instrument evidencing such Holder's right to receive such
additional shares upon the occurrence of the event requiring such adjustment.

SECTION 7. OWNERSHIP.

         7.1 OWNERSHIP OF THIS WARRANT. The Company may deem and treat the
person in whose name this Warrant is registered as the holder and owner hereof
(notwithstanding any notations of ownership or writing hereon made by anyone
other than the Company) for all purposes and shall not be affected by any notice
to the contrary until presentation of this Warrant for registration of transfer
as provided in this Section 7.

         7.2 TRANSFER AND REPLACEMENT. This Warrant and all rights hereunder are
transferable in whole or in part upon the books of the Company by the Holder
hereof only to i2's successors or majority-owned subsidiaries of i2 which
continue at all times to be majority-owned subsidiaries of i2 or of i2's
successors, in person or by duly authorized attorney, and a new Warrant or
Warrants, of the same tenor as this Warrant but registered in the name of the
transferee or transferees (and in the name of the Holder, if a partial transfer
is effected) shall be made and delivered by the Company upon surrender of this
Warrant duly endorsed, at the office of the Company referred to in Section 14
hereof. Upon receipt by the Company of evidence reasonably satisfactory to it of
the loss, theft or destruction, and, in such case, of indemnity or security
reasonably satisfactory to it, and upon surrender of this Warrant if mutilated,
the Company will make and deliver a new Warrant of like tenor, in lieu of this
Warrant; provided that if the Holder hereof is an instrumentality of a state or
local government or an institutional holder or a nominee for such an
instrumentality or institutional holder an irrevocable agreement of indemnity by
such Holder shall be sufficient for all purposes of this Section 7, and no

                                      4
<PAGE>

evidence of loss or theft or destruction shall be necessary. This Warrant shall
be promptly cancelled by the Company upon the surrender hereof in connection
with any transfer or replacement. The stock transfer taxes (if any) payable in
connection with a transfer of this Warrant shall be payable by the Holder.
Holder will not transfer this Warrant and the rights hereunder except in
compliance with the terms of this Warrant and with federal and state securities
laws.

SECTION 8. MERGERS, CONSOLIDATION, SALES. In the case of any proposed
consolidation or merger of the Company with another entity, or the proposed sale
of all or substantially all of its assets to another person or entity, or any
proposed reorganization or reclassification of the capital stock of the Company,
then, as a condition of such consolidation, merger, sale, reorganization or
reclassification, lawful and adequate provision shall be made whereby the Holder
of this Warrant shall thereafter have the right to receive upon the basis and
upon the terms and conditions specified herein, in lieu of the shares of the
Common Stock of the Company immediately theretofore purchasable hereunder, such
shares of stock, securities or assets as may (by virtue of such consolidation,
merger, sale, reorganization or reclassification) be issued or payable with
respect to or in exchange for the number of shares of such Common Stock
purchasable hereunder immediately before such consolidation, merger, sale,
reorganization or reclassification. In any such case appropriate provision shall
be made with respect to the rights and interests of the Holder of this Warrant
to the end that the provisions hereof shall thereafter be applicable as nearly
as may be, in relation to any shares of stock, securities or assets thereafter
deliverable upon the exercise of this Warrant.

SECTION 9. NOTICE OF EXTRAORDINARY DIVIDENDS. If the Board of Directors of the
Company shall declare any dividend or other distribution on its Common Stock
except out of earned surplus or by way of a stock dividend payable in shares of
its Common Stock, then the Company shall mail notice thereof to the Holder
hereof not less than fifteen (15) days prior to the record date fixed for
determining shareholders entitled to participate in such dividend or other
distribution, and the Holder hereof shall not participate in such dividend or
other distribution unless this Warrant is exercised prior to such record date.
The provisions of this Section 9 shall not apply to distributions made in
connection with transactions covered by Section 8.

SECTION 10. FRACTIONAL SHARES. Fractional shares shall not be issued upon the
exercise of this Warrant but in any case where the Holder would, except for the
provisions of this Section 10, be entitled under the terms hereof to receive a
fractional share upon the complete exercise of this Warrant, the Company shall,
upon the exercise of this Warrant for the largest number of whole shares then
called for, pay a sum in cash equal to the excess of the value of such
fractional share (determined in such reasonable manner as may be prescribed in
good faith by the Board of Directors of the Company) over the Warrant Price for
such fractional share.

SECTION 11. COVENANTS OF THE COMPANY. The Company covenants and agrees that
during the Term of this Warrant, unless otherwise approved by the Holder of this
Warrant:

                  11.1 WILL RESERVE SHARES. The Company will reserve and set
         apart and have available for issuance, free from preemptive or other
         preferential rights, the number of

                                      5
<PAGE>

         shares of authorized but unissued Common Stock deliverable upon the
         exercise of this Warrant.

                  11.2 WILL BIND SUCCESSORS. This Warrant shall be binding upon
         any corporation or other person or entity succeeding to the Company by
         merger, consolidation or acquisition of all or substantially all of the
         Company's assets.

SECTION 12.   INCIDENTAL OR "PIGGY-BACK" REGISTRATION

                           (a) Definitions. The following definitions are
applicable to this Section 12:

                           "EXCHANGE ACT" means the Securities Exchange Act of
1934, as amended, and the rules and regulations promulgated thereunder.

                           "INITIAL PUBLIC OFFERING" means a firm commitment
underwritten initial public offering pursuant to an effective Registration
Statement filed under the Securities Act.

                           "INSPECTOR" has the meaning set forth in Section
12(e)(viii) of this Warrant.

                           "IPO EFFECTIVENESS DATE" means the closing date of
the Company's Initial Public Offering.

                           "PERSON" means any individual, firm, corporation,
partnership, limited liability company, trust, incorporated or unincorporated
association, joint venture, joint stock company, limited liability company,
government (or an agency or political subdivision thereof) or other entity of
any kind, and shall include any successor (by merger or otherwise) of such
entity.

                           "REGISTRABLE SECURITIES" means each of the following:
(a) any and all Warrant Shares owned by a Holder pursuant to the exercise of a
Warrant; and (b) any shares of Common Stock issued or issuable to a Holder with
respect to Warrant Shares owned by a Holder pursuant to the exercise of a
Warrant by way of stock dividend or stock split or in connection with a
combination of shares, recapitalization, merger, consolidation or other
reorganization or otherwise.

                           "REGISTRATION STATEMENT" means a Registration
Statement filed pursuant to the Securities Act.

                           "SEC" means the Securities and Exchange Commission or
any similar agency then having jurisdiction to enforce the Securities Act.

                           "SECURITIES ACT" means the Securities Act of 1933, as
amended, and the rules and regulations promulgated thereunder.

                                      6
<PAGE>

                           (b) REQUEST FOR INCIDENTAL REGISTRATION. At any time
after the IPO Effectiveness Date, if the Company proposes to file a Registration
Statement under the Securities Act with respect to an offering by the Company
for its own account (other than a Registration Statement on Form S-4 or S-8 or
any successor thereto), then the Company shall give written notice of such
proposed filing to each Holder of Registrable Securities (including the Holders
of vested Warrants not yet exercised) at least thirty (30) days before the
anticipated filing date, and such notice shall describe the proposed
registration and distribution and offer such Holder the opportunity to register
the number of Registrable Securities as each such Holder may request limited to
a percentage of the total offering equal to the percentage of the Company's
fully diluted capitalization represented by outstanding shares held by the
Holders (as further defined in Section 12(o) hereto) (an "Incidental
Registration"). The Company shall, and shall use its best efforts (within ten
(10) days of the notice provided for in the preceding sentence) to cause the
managing underwriter or underwriters of a proposed underwritten offering (the
"Company Underwriter") to permit each of the Holders who have requested in
writing to participate in the Incidental Registration to include its or his
Registrable Securities in such offering on the same terms and conditions as the
securities of the Company included therein. In connection with any Incidental
Registration under this Section 12(b) involving an underwriting, the Company
shall not be required to include any Registrable Securities in such underwriting
unless the holders thereof accept the terms of the underwriting as agreed upon
between the Company and the Company Underwriter, and then only in such quantity
as will not, in the opinion of the Company Underwriter, jeopardize the success
of the offering by the Company. If in the written opinion of the Company
Underwriter the registration of all or part of the Registrable Securities which
the Holders have requested to be included would materially adversely affect such
offering, then the Company shall be entitled to cut back from such Incidental
Registration, to the extent of the amount that the Company Underwriter believes
may be sold without causing such adverse effect, FIRST, all Registrable
Securities to be offered by the Holders, regardless of whether or not securities
to be offered by any other holders or the Company are to be similarly cut back.

                           (c) EXPENSES. The Company shall bear all Registration
Expenses (as defined in Section 12(h) herein) (other than underwriting discounts
and commissions) in connection with any Incidental Registration pursuant to this
Section 12, whether or not such Incidental Registration becomes effective.

                           (d) RESTRICTIONS ON PUBLIC SALE BY HOLDERS. If and to
the extent requested by the Company or other holders of Company securities
exercising registration rights, as the case may be, in the case of a
non-underwritten public offering, or if and to the extent requested by the
underwriter, in the case of an underwritten public offering, each Holder of
Registrable Securities agrees not to effect any public sale or distribution of
any Registrable Securities or of any securities convertible into or exchangeable
or exercisable for such Registrable Securities, including without limitation a
sale pursuant to Rule 144 under the Securities Act, during the 90-day period
(180-day period in the case of an Initial Public Offering) or such shorter
period agreed upon by such Holder and the requesting party beginning on the
effective date of such Registration Statement (except as part of such
registration as otherwise permitted).

                                      7
<PAGE>

                           (e) OBLIGATIONS OF THE COMPANY. Whenever registration
of Registrable Securities has been requested pursuant to this Section 12, the
Company shall use its best efforts to effect the registration and sale of such
Registrable Securities in accordance with the intended method of distribution
thereof as quickly as practicable, and in connection with any such request, the
Company shall, as expeditiously as possible:

                                    (i)  use its best efforts to prepare and
file with the SEC a Registration Statement on any form for which the Company
then qualifies or which counsel for the Company shall deem appropriate and
which form shall be available for the sale of such Registrable Securities in
accordance with the intended method of distribution thereof, and use its best
efforts to cause such Registration Statement to become effective; PROVIDED,
HOWEVER, that (x) before filing a Registration Statement or prospectus or any
amendments or supplements thereto, the Company shall provide counsel selected
by the Holders holding a majority of the Registrable Securities being
registered in such registration ("Holders' Counsel") and any other Inspector
with an adequate and appropriate opportunity to participate in the
preparation of such Registration Statement and each prospectus included
therein (and each amendment or supplement thereto) to be filed with the SEC,
which documents shall be subject to the review of Holders' Counsel, and (y)
the Company shall notify the Holders' Counsel and each seller of Registrable
Securities of any stop order issued or threatened by the SEC and take all
reasonable action required to prevent the entry of such stop order or to
remove it if entered;

                                    (ii)  prepare and file with the SEC such
amendments and supplements to such Registration Statement and the prospectus
used in connection therewith as may be necessary to keep such Registration
Statement effective for the lesser of (x) 120 days and (y) such shorter period
which will terminate when all Registrable Securities covered by such
Registration Statement have been sold, and comply with the provisions of the
Securities Act with respect to the disposition of all securities covered by such
Registration Statement during such period in accordance with the intended
methods of disposition by the sellers thereof set forth in such Registration
Statement;

                                    (iii) as soon as reasonably possible,
furnish to each seller of Registrable Securities, prior to filing a Registration
Statement, copies of such Registration Statement as is proposed to be filed, and
thereafter such number of copies of such Registration Statement, each amendment
and supplement thereto (in each case including all exhibits thereto), the
prospectus included in such Registration Statement (including each preliminary
prospectus) and such other documents as each such seller may reasonably request
in order to facilitate the disposition of the Registrable Securities owned by
such seller;

                                    (iv)  use its best efforts to register or
qualify such Registrable Securities under such other securities or "blue sky"
laws of such jurisdictions as any seller of Registrable Securities may request,
and to continue such qualification in effect in such jurisdiction for as long as
permissible pursuant to the laws of such jurisdiction, or for as long as any
such seller requests or until all of such Registrable Securities are sold,
whichever is shortest, and do any and all other acts and things which may be
reasonably necessary or advisable to enable any such seller to consummate the
disposition in such jurisdictions of the Registrable Securities owned by such
seller; PROVIDED, HOWEVER, that the Company shall not be required to

                                      8
<PAGE>

(x) qualify generally to do business in any jurisdiction where it would not
otherwise be required to qualify but for this Section 12(e)(iv), (y) subject
itself to taxation in any such jurisdiction or (z) consent to general service
of process in any such jurisdiction;

                                    (v)     use its best efforts to cause the
Registrable Securities covered by such Registration Statement to be registered
with or approved by such other governmental agencies or authorities as may be
necessary by virtue of the business and operations of the Company to enable the
seller or sellers of Registrable Securities to consummate the disposition of
such Registrable Securities;

                                    (vi)    notify each seller of Registrable
Securities at any time when a prospectus relating thereto is required to be
delivered under the Securities Act, upon discovery that, or upon the happening
of any event as a result of which, the prospectus included in such Registration
Statement contains an untrue statement of a material fact or omits to state any
material fact required to be stated therein or necessary to make the statements
therein not misleading in light of the circumstances under which they were made,
and the Company shall promptly prepare a supplement or amendment to such
prospectus and furnish to each seller a reasonable number of copies of a
supplement to or an amendment of such prospectus as may be necessary so that,
after delivery to the purchasers of such Registrable Securities, such prospectus
shall not contain an untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary to make the statements
therein not misleading in light of the circumstances under which they were made;

                                    (vii)   enter into and perform customary
agreements (including an underwriting agreement in customary form with the
underwriter) and take such other actions as are prudent and reasonably required
in order to expedite or facilitate the disposition of such Registrable
Securities;

                                    (viii)  make available for inspection by
any seller of Registrable Securities, any managing underwriter participating
in any disposition pursuant to such Registration Statement, Holders' Counsel
and any attorney, accountant or other agent retained by any such seller or
any managing underwriter (each, an "Inspector" and collectively, the
"Inspectors"), all financial and other records, pertinent corporate documents
and properties of the Company and its subsidiaries (collectively, the
"Records") as shall be reasonably necessary to enable them to exercise their
due diligence responsibility, and cause the Company's and its subsidiaries'
officers, directors and employees, and the independent public accountants of
the Company, to supply all information reasonably requested by any such
Inspector in connection with such Registration Statement. Records that the
Company determines, in good faith, to be confidential and which it notifies
the Inspectors are confidential shall not be disclosed by the Inspectors
unless (x) the disclosure of such Records is necessary to avoid or correct a
misstatement or omission in the Registration Statement, (y) the release of
such Records is ordered pursuant to a subpoena or other order from a court of
competent jurisdiction or (z) the information in such Records was known to
the Inspectors on a non-confidential basis prior to its disclosure by the
Company or has been made generally available to the public. Each seller of
Registrable Securities agrees that it shall, upon learning that disclosure of
such Records is sought in a court of competent jurisdiction, give notice to
the Company and allow the Company, at the

                                      9
<PAGE>

Company's expense, to undertake appropriate action to prevent disclosure of
the Records deemed confidential;

                                    (ix)    if such sale is pursuant to an
underwritten offering, use its best efforts to obtain a "cold comfort" letter
from the Company's independent public accountants in customary form and covering
such matters of the type customarily covered by "cold comfort" letters as
Holders' Counsel or the managing underwriter reasonably request;

                                    (x)     use its best efforts to furnish,
at the request of any seller of Registrable Securities on the date such
securities are delivered to the underwriters for sale pursuant to such
registration or, if such securities are not being sold through underwriters,
on the date the Registration Statement with respect to such securities
becomes effective, an opinion, dated such date, of counsel representing the
Company for the purposes of such registration, addressed to the underwriters,
if any, and to the seller making such request, covering such legal matters
with respect to the registration in respect of which such opinion is being
given as such seller may reasonably request and are customarily included in
such opinions;

                                    (xi)    otherwise use its best efforts to
comply with all applicable rules and regulations of the SEC, and make available
to its security holders, as soon as reasonably practicable but no later than
fifteen (15) months after the effective date of the Registration Statement, an
earnings statement covering a period of twelve (12) months beginning after the
effective date of the Registration Statement, in a manner which satisfies the
provisions of Section 11(a) of the Securities Act and Rule 158 thereunder;

                                    (xii)   cause all such Registrable
Securities to be listed on each securities exchange on which similar
securities issued by the Company are then listed, PROVIDED that the
applicable listing requirements are satisfied;

                                    (xiii)  keep Holders' Counsel advised in
writing as to the initiation and progress of any registration under this Section
12;

                                    (xiv)   cooperate with each seller of
Registrable Securities and each underwriter participating in the disposition of
such Registrable Securities and their respective counsel in connection with any
filings required to be made with the National Association of Securities Dealers,
Inc. (the "NASD"); and

                                    (xv)    use best efforts to take all other
steps necessary to effect the registration of the Registrable Securities
contemplated hereby.

                           (f) SELLER INFORMATION. The Company may require each
seller of Registrable Securities as to which any registration is being effected
to furnish to the Company such information regarding the distribution of such
securities as the Company may from time to time reasonably request in writing.

                           (g) NOTICE TO DISCONTINUE. Each Holder of Registrable
Securities agrees that, upon receipt of any notice from the Company of the
happening of any event of the

                                     10
<PAGE>

kind described in Section 12(e)(vi), such Holder shall forthwith discontinue
disposition of Registrable Securities pursuant to the Registration Statement
covering such Registrable Securities until such Holder's receipt of the
copies of the supplemented or amended prospectus contemplated by Section
12(e)(vi) and, if so directed by the Company, such Holder shall deliver to
the Company (at the Company's expense) all copies, other than permanent file
copies then in such Holder's possession, of the prospectus covering such
Registrable Securities which is current at the time of receipt of such
notice. If the Company shall give any such notice, the Company shall extend
the period during which such Registration Statement shall be maintained
effective pursuant to this Agreement (including, without limitation, the
period referred to in Section 12(e)(ii)) by the number of days during the
period from and including the date of the giving of such notice pursuant to
Section 12(e)(vi) to and including the date when the Holder shall have
received the copies of the supplemented or amended prospectus contemplated by
and meeting the requirements of Section 12(e)(vi).

                           (h) REGISTRATION EXPENSES. The Company shall pay all
expenses (other than underwriting discounts and commissions) arising from or
incident to the performance of, or compliance with, this Agreement, including,
without limitation, (i) SEC, stock exchange and NASD registration and filing
fees, (ii) all fees and expenses incurred in complying with securities or "blue
sky" laws (including reasonable fees, charges and disbursements of counsel in
connection with "blue sky" qualifications of the Registrable Securities), (iii)
all printing, messenger and delivery expenses, (iv) the fees, charges and
disbursements of counsel to the Company (but not, unless expressly stated
herein, of counsel to the Holder) and of its independent public accountants and
any other accounting fees, charges and expenses incurred by the Company
(including, without limitation, any expenses arising from any "cold comfort"
letters or any special audits incident to or required by any registration or
qualification) and any legal fees, charges and expenses incurred by the Company
and (v) any liability insurance or other premiums for insurance obtained in
connection with any Incidental Registration pursuant to the terms of this
Agreement, regardless of whether such Registration Statement is declared
effective. All of the expenses described in this Section 12(h) are referred to
herein as "Registration Expenses."

                           (i) INDEMNIFICATION BY THE COMPANY. The Company
agrees to indemnify and hold harmless, to the fullest extent permitted by law,
each Holder, its officers, directors, trustees, partners, employees, advisors
and agents and each Person who controls (within the meaning of the Securities
Act or the Exchange Act) such Holder from and against any and all losses,
claims, damages, liabilities and expenses (including reasonable costs of
investigation) arising out of or based upon any untrue, or allegedly untrue,
statement of a material fact contained in any Registration Statement, prospectus
or preliminary prospectus or notification or offering circular (as amended or
supplemented if the Company shall have furnished any amendments or supplements
thereto) or arising out of or based upon any omission or alleged omission to
state therein a material fact required to be stated therein or necessary to make
the statements therein not misleading, except insofar as the same are caused by
or contained in any information concerning such Holder furnished in writing to
the Company by such Holder expressly for use therein. The Company shall also
provide customary indemnities to any underwriters of the Registrable Securities,
their officers, directors and employees and each Person who controls such
underwriters (within the meaning of the Securities Act and the

                                     11
<PAGE>

Exchange Act) to the same extent as provided above with respect to the
indemnification of the Holders of Registrable Securities.

                           (j) INDEMNIFICATION BY HOLDERS. In connection with
any Registration Statement in which a Holder is participating pursuant to this
Section 12, each such Holder shall furnish to the Company in writing such
information with respect to such Holder as the Company may reasonably request or
as may be required by law for use in connection with any such Registration
Statement or prospectus and each Holder agrees to indemnify and hold harmless,
to the fullest extent permitted by law, the Company, any underwriter retained by
the Company and their respective directors, officers, employees and each Person
who controls the Company or such underwriter (within the meaning of the
Securities Act and the Exchange Act) to the same extent as the foregoing
indemnity from the Company to the Holders, but only with respect to any such
information with respect to such Holder furnished in writing to the Company by
such Holder expressly for use therein; PROVIDED, HOWEVER, that the total amount
to be indemnified by such Holder pursuant to this Section 12(j) shall be limited
to the net proceeds received by such Holder in the offering to which the
Registration Statement or prospectus relates.

                           (k) CONDUCT OF INDEMNIFICATION PROCEEDINGS. Any
Person entitled to indemnification hereunder (the "Indemnified Party") agrees to
give prompt written notice to the indemnifying party (the "Indemnifying Party")
after the receipt by the Indemnified Party of any written notice of the
commencement of any action, suit, proceeding or investigation or threat thereof
made in writing for which the Indemnified Party intends to claim indemnification
or contribution pursuant to this Agreement; PROVIDED, HOWEVER, that the failure
so to notify the Indemnifying Party shall not relieve the Indemnifying Party of
any liability that it may have to the Indemnified Party hereunder unless, and
only to the extent that, such failure results in the Indemnifying Party's
forfeiture of substantive rights or defenses. If notice of commencement of any
such action is given to the Indemnifying Party as above provided, the
Indemnifying Party shall be entitled to participate in and, to the extent it may
wish, jointly with any other Indemnifying Party similarly notified, to assume
the defense of such action at its own expense, with counsel chosen by it and
satisfactory to such Indemnified Party. The Indemnified Party shall have the
right to employ separate counsel in any such action and participate in the
defense thereof, but the fees and expenses of such counsel (other than
reasonable costs of investigation) shall be paid by the Indemnified Party unless
(i) the Indemnifying Party agrees to pay the same, (ii) the Indemnifying Party
fails to assume the defense of such action with counsel satisfactory to the
Indemnified Party in its reasonable judgment or (iii) the named parties to any
such action (including any impleaded parties) have been advised by such counsel
that either (x) representation of such Indemnified Party and the Indemnifying
Party by the same counsel would be inappropriate under applicable standards of
professional conduct or (y) there may be one or more legal defenses available to
it which are different from or additional to those available to the Indemnifying
Party. In any of such cases, the Indemnifying Party shall not have the right to
assume the defense of such action on behalf of such Indemnified Party. No
Indemnifying Party shall be liable for any settlement entered into without its
written consent, which consent shall not be unreasonably withheld.

                           (l) CONTRIBUTION. If the indemnification provided for
in this Section 12 from the Indemnifying Party is unavailable to an Indemnified
Party hereunder in

                                     12
<PAGE>

respect of any losses, claims, damages, liabilities or expenses referred to
therein, then the Indemnifying Party, in lieu of indemnifying such
Indemnified Party, shall contribute to the amount paid or payable by such
Indemnified Party as a result of such losses, claims, damages, liabilities or
expenses in such proportion as is appropriate to reflect the relative fault
of the Indemnifying Party and Indemnified Party in connection with the
actions which resulted in such losses, claims, damages, liabilities or
expenses, as well as any other relevant equitable considerations. The
relative faults of such Indemnifying Party and Indemnified Party shall be
determined by reference to, among other things, whether any action in
question, including any untrue or alleged untrue statement of a material fact
or omission or alleged omission to state a material fact, has been made by,
or relates to information supplied by, such Indemnifying Party or Indemnified
Party, and the parties' relative intent, knowledge, access to information and
opportunity to correct or prevent such action. The amount paid or payable by
a party as a result of the losses, claims, damages, liabilities and expenses
referred to above shall be deemed to include, subject to the limitations set
forth in Sections 12(i), 12(j) and 12(k), any legal or other fees, charges or
expenses reasonably incurred by such party in connection with any
investigation or proceeding; PROVIDED that the total amount to be indemnified
by such Holder shall be limited to the net proceeds received by such Holder
in the offering.

                  The parties hereto agree that it would not be just and
equitable if contribution pursuant to this Section 12(l) were determined by pro
rata allocation or by any other method of allocation which does not take account
of the equitable considerations referred to in the immediately preceding
paragraph. No Person guilty of fraudulent misrepresentation (within the meaning
of Section 11(f) of the Securities Act) shall be entitled to contribution from
any Person.

                           (m) RECAPITALIZATIONS, EXCHANGES, ETC. The provisions
of this Section 12 shall apply, to the full extent set forth herein with respect
to (i) the Warrant Shares, (ii) any and all shares of voting common stock of the
Company into which the Warrant Shares are converted, exchanged or substituted in
any recapitalization or other capital reorganization by the Company and (iii)
any and all equity securities of the Company or any successor or assign of the
Company (whether by merger, consolidation, sale of assets or otherwise) which
may be issued in respect of, in conversion of, in exchange for or in
substitution of, the Warrant Shares and shall be appropriately adjusted for any
stock dividends, splits, reverse splits, combinations, recapitalizations and the
like occurring after the date hereof.

                           (n) REGISTRABLE SECURITIES. For the purposes of this
Warrant, Registrable Securities will cease to be Registrable Securities when (i)
a Registration Statement covering such Registrable Securities has been declared
effective under the Securities Act by the SEC and such Registrable Securities
have been disposed of pursuant to such effective Registration Statement, (ii)
the entire amount of Registrable Securities proposed to be sold in a single
sale, in the opinion of counsel satisfactory to the Company and the Holder, each
in their reasonable judgment, may be distributed to the public without any
limitation as to volume pursuant to Rule 144 (or any successor provision then in
effect) under the Securities Act or (iii) the Registrable Securities are
proposed to be sold or distributed by a Person other than i2 or a majority owned
subsidiary of i2.

                                     13
<PAGE>

                           (o) HOLDERS OF REGISTRABLE SECURITIES. If the
Company receives conflicting instructions, notices or elections from two or
more Persons with respect to the same Registrable Securities, then the Company
may act upon the basis of the instructions, notice or election received from
the registered owner of such Registrable Securities. Registrable Securities
issuable upon exercise of vested warrants shall be deemed outstanding for the
purposes of this Section 12.

SECTION 13. REPRESENTATIONS AND WARRANTIES OF HOLDER.

         Holder represents and warrants to the Company that:

         13.1 Holder is acquiring the Warrant and, to the extent applicable,
the Common Stock (collectively, the "Restricted Securities") solely for its
own account, for investment and not with a view to the distribution thereof
within the meaning of the Securities Act.

         13.2 Holder understands that the Restricted Securities have not been
registered or qualified under the Securities Act or any state securities laws,
by reason of their issuance and sale in transactions exempt from the
registration or qualification requirements of the Securities Act and
applicable state securities laws. Holder acknowledges that reliance on said
exemptions is predicated in part on the accuracy of its representations and
warranties herein. Holder acknowledges and agrees that the Restricted
Securities must be held indefinitely unless a subsequent disposition thereof
is registered or qualified under the Securities Act and applicable state
securities laws or is exempt from registration; and that the Company is not
required so to register or qualify any such securities or to take any action
to make such an exemption available other than as provided in this Warrant.
Holder acknowledges that (A) there may be no public market for such
securities, (B) there can be no assurance that any such market will ever
develop and (C) there can be no assurance that it will be able to liquidate
its investment in the Company.

         13.3 Holder further understands that the exemption from registration
afforded by Rules 144 and 144A (the provisions of which are known to it)
issued under the Securities Act depends on the satisfaction of various
conditions and that, if applicable, Rules 144 and 144A afford the basis for
sales under certain circumstances only in limited amounts.

         13.4 Holder represents and warrants to the Company that it will not
transfer any portion of the Restricted Securities, except in compliance with
the Securities Act and applicable state securities laws.

         13.5 Holder represents and warrants to the Company that (i) it has
such knowledge and experience in financial and business matters as is
necessary to enable it to evaluate the merits and risks of an investment in
the Company and is not utilizing any other person to be its purchaser
representative in connection with evaluating such merits and risks; (ii) it
has no present need for liquidity in its investment in the Company and is able
to bear the risk of that investment for an indefinite period and to afford a
complete loss thereof, and (iii) it was not formed for the specific purpose of
making an investment in the Company.

                                      14

<PAGE>

         13.6 Holder acknowledges that it has had an opportunity to discuss
with management of the Company all of the business and financial affairs of
the Company.

         13.7 Holder acknowledges that investment in the Company involves a
high degree of risk.

         13.8 Holder is an accredited investor as defined in Rule 501(a) of
Regulation D promulgated under the Securities Act.

SECTION 14. NOTICES. Any notice or other document required or permitted to be
given or delivered to the Holder shall be delivered at, or sent by certified
or registered mail to, the Holder at i2 Technologies, Inc., 11701 Luna Road,
Dallas, Texas 75234, Attn: Corporate Counsel or to such other address as shall
have been furnished to the Company in writing by the Holder. Any notice or
other document required or permitted to be given or delivered to the Company
shall be delivered at, or sent by certified or registered mail to, the Company
at 8787 Stemmons Freeway, Dallas, Texas, 75247, Attention: Chief Financial
Officer, with a copy to EXE Technologies, Inc., 300 Baldwin Tower Boulevard,
Eddystone, PA, 19033, Attention: General Counsel or to such other address as
shall have been furnished in writing to the Holder by the Company. Any notice
so addressed and mailed by registered or certified mail shall be deemed to be
given when so mailed. Any notice so addressed and otherwise delivered shall be
deemed to be given when actually received by the addressee.

SECTION 15. NO RIGHTS AS STOCKHOLDER; LIMITATION OF LIABILITY. This Warrant
shall not entitle the Holder to any of the rights of a stockholder of the
Company except upon exercise in accordance with the terms hereof. No provision
hereof, in the absence of affirmative action by the Holder to purchase shares
of Common Stock, and no mere enumeration herein of the rights or privileges of
the Holder, shall give rise to any liability of the Holder for the Warrant
Price hereunder or as a stockholder of the Company, whether such liability is
asserted by the Company or by creditors of the Company.

SECTION 16. LAW GOVERNING. THE VALIDITY, INTERPRETATION, AND ENFORCEMENT OF
THIS WARRANT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF DELAWARE WITHOUT GIVING EFFECT TO THE CONFLICT OF LAW PRINCIPLES
OF ANY JURISDICTION.

SECTION 17. MISCELLANEOUS. This Warrant constitutes the full and entire
understanding and agreement between the parties with regard to the subject
hereof. The terms of this Warrant shall be binding upon and shall inure to the
benefit of any successors or assigns of the Company and of any permitted and
registered holder or holders hereof and of the Common Stock issued or issuable
upon exercise hereof. This Warrant and any provision hereof may be changed,
waived, discharged or terminated only by an instrument in writing signed by
both parties (or any respective predecessor in interest thereof). The headings
in this Warrant are for purposes of reference only and shall not affect the
meaning or construction of any of the provisions hereof.

                                      15

<PAGE>

         IN WITNESS WHEREOF, the Company has caused this Warrant to be signed
by its duly authorized officer as of the 31st day of May, 2000.

                                       EXE TECHNOLOGIES, INC.

(CORPORATE SEAL)                       By: /s/ Michael A. Burstein
                                          -------------------------------------
                                           Michael A. Burstein
                                           Senior Vice President, Finance, and
                                           Chief Financial Officer

ACKNOWLEDGED AND ACCEPTED
i2 TECHNOLOGIES, INC.

By: /s/ Keith Larney
    ---------------------------------------
         Name: Keith Larney
         Title: Associate Corporate Counsel

                                      16

<PAGE>

                           FORM OF NOTICE OF EXERCISE

                [To be signed only upon exercise of the Warrant]

                     TO BE EXECUTED BY THE REGISTERED HOLDER
                         TO EXERCISE THE WITHIN WARRANT

         The undersigned hereby exercises the right to purchase ____ shares of
Common Stock which the undersigned is entitled to purchase by the terms of the
within Warrant according to the conditions thereof, and herewith makes payment
of $_________ therefor.

All shares to be issued pursuant hereto shall be issued in the name of, and
the initial address of such person to be entered on the books of the Company
shall be:

         The shares are to be issued in certificates of the following
denominations:

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

[APPLICABLE ONLY IF THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE OF THE
WARRANT ARE NOT REGISTERED FOR RESALE UNDER THE SECURITIES ACT OF 1933, AS
AMENDED]. The undersigned hereby represents and warrants that the aforesaid
shares of Common Stock are being acquired for the account of the undersigned
for investment and not with a view to, or for resale, in connection with the
distribution thereof, and that the undersigned has no present intention of
distributing or reselling such shares, and that all representations and
warranties of the undersigned set forth in Section 13 of the attached Warrant
are true and correct as of the date hereof. In support thereof, the
undersigned agrees to execute an Investment Representation Statement in a form
to be mutually agreed by the parties.

                                             [Type Name of Holder]

                                             By:
                                                 ------------------------------
                                             Title:
                                                    ---------------------------

Dated:
       -------------------

                                      17

<PAGE>

         FORM OF ASSIGNMENT
                                    (ENTIRE)

               [To be signed only upon transfer of entire Warrant]

                     TO BE EXECUTED BY THE REGISTERED HOLDER
                         TO TRANSFER THE WITHIN WARRANT

         FOR VALUE RECEIVED ___________________ hereby sells, assigns and
transfers unto ____________________ all rights of the undersigned under and
pursuant to the within Warrant, and the undersigned does hereby irrevocably
constitute and appoint _____________ as Attorney-in-fact to transfer the said
Warrant on the books of the Company, with full power of substitution.

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

                                           [Type Name of Holder]

                                           By:
                                               ---------------------------
                                           Title:
                                                  ------------------------

Dated:
       -------------------

NOTICE

         The signature to the foregoing Assignment must correspond to the name
as written upon the face of the within Warrant in every particular, without
alteration or enlargement or any change whatsoever.

                                      18

<PAGE>

         FORM OF ASSIGNMENT
                                    (PARTIAL)

              [To be signed only upon partial transfer of Warrant]

                     TO BE EXECUTED BY THE REGISTERED HOLDER
                         TO TRANSFER THE WITHIN WARRANT

         FOR VALUE RECEIVED ______________________ hereby sells, assigns and
transfers unto _________________ (i) the rights of the undersigned to purchase
_____ shares of Common Stock under and pursuant to the within Warrant, and
(ii) on a non-exclusive basis, all other rights of the undersigned under and
pursuant to the within Warrant, it being understood that the undersigned shall
retain, severally (and not jointly) with the transferee(s) named herein, all
rights assigned on such non-exclusive basis. The undersigned does hereby
irrevocably constitute and appoint ____________________ as Attorney-in-fact to
transfer the said Warrant on the books of the Company, with full power of
substitution.

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

                                           [Type Name of Holder]

                                           By:
                                               ---------------------------
                                           Title:
                                                  ------------------------

Dated:
       -------------------

NOTICE

         The signature to the foregoing Assignment must correspond to the name
as written upon the face of the within Warrant in every particular, without
alteration or enlargement or any change whatsoever.

                                      19

<PAGE>

                                                                       Exhibit A

                         FORM OF STOCKHOLDERS AGREEMENT

                  THIS STOCKHOLDERS AGREEMENT, dated as of _________ (this
"AGREEMENT"), is between EXE Technologies, Inc., a Delaware corporation (the
"COMPANY"), and ______________ (the "Stockholder").

                  WHEREAS, the Stockholder owns, or is acquiring in connection
with the execution of this Agreement, shares of Class B Common Stock, par value
$.01 per share, of the Company together with any securities into which such
shares may be converted or for which such shares may be exchanged (the
"SHARES").

                  WHEREAS, the parties hereto wish to restrict the transfer of
the Shares and to provide for, among other things, first offer, bring-along and
certain other rights under certain conditions.

                  NOW, THEREFORE, in consideration of the mutual promises and
agreements set forth herein, the adequacy of which are hereby acknowledged, the
parties hereto agree as follows:

                  1.  RESTRICTIONS ON TRANSFER OF SHARES.

                      1.1 PERMITTED TRANSFERS. Notwithstanding anything to
the contrary contained in this Agreement, but subject to Sections 1.2 and
1.3, at any time, the Stockholder may transfer all or a portion of its Shares
to a majority-owned subsidiary of i2 Technologies, Inc. ("i2") that continues
at all times to be a majority-owned subsidiary of i2 (a "PERMITTED
TRANSFEREE"). A Permitted Transferee of Shares pursuant to this Section 1.1
may transfer its Shares pursuant to this Section 1.1 only to the transferor
Stockholder or to a Person that is a Permitted Transferee of such transferor
Stockholder. Notwithstanding anything to the contrary contained in this
Agreement, if any Permitted Transferee of a Stockholder to whom or which
Shares have been transferred in accordance with this Section 1.1 ceases to be
a Permitted Transferee of such Stockholder, then, prior to such event, such
Stockholder may repurchase such Shares or, if such Stockholder does not wish
to repurchase such Shares, then such Permitted Transferee shall offer such
Shares to the Company, its designee, or assignee in accordance with Section
2.2.

                      1.2 PERMITTED TRANSFER PROCEDURES. If any Stockholder
wishes to transfer Shares to a Permitted Transferee under Section 1.1, such
Stockholder shall give notice to the Company of its intention to make any
transfer permitted under Section 1.1 not less than ten (10) days prior to
effecting such transfer, which notice shall state the name and address of
each Permitted Transferee to whom such transfer is proposed and the number of
Shares proposed to be transferred to such Permitted Transferee.

                                       A-1

<PAGE>

                      1.3 TRANSFERS IN COMPLIANCE WITH LAW; SUBSTITUTION OF
TRANSFEREE. Notwithstanding any other provision of this Agreement, no
transfer may be made pursuant to this Section 1 or Section 2 unless: (a) the
transferee has agreed in writing to be bound by the terms and conditions of
this Agreement (whereupon such transferee shall be substituted for, and shall
enjoy the same rights and be subject to the same obligations, as its, his, or
her predecessor hereunder); (b) the transfer complies in all respects with
the applicable provisions of this Agreement; and (c) the transfer complies in
all respects with applicable federal and state securities laws, including,
without limitation, the Securities Act. Upon becoming a party to this
Agreement, the Permitted Transferee of a Stockholder shall be substituted
for, and shall enjoy the same rights and be subject to the same obligations
as, the transferring Stockholder hereunder with respect to the Shares
transferred to such Permitted Transferee.

                  2.  MANDATORY TRANSFER, RIGHT OF FIRST OFFER AND BRING-ALONG
RIGHTS.

                      2.1 RESERVED.

                          2.2 PROPOSED VOLUNTARY TRANSFERS.

                              2.2.1 OFFERING NOTICE. Subject to Section 1,
if the Stockholder (the "SELLING STOCKHOLDER") wishes to transfer all or any
portion of its, his, or her Shares to any person or other entity (other than to
a Permitted Transferee or other than to a competitor of EXE, including without
limitation, Catalyst, Manhattan Associates, McHugh Corporation and Optum, to
whom transfers shall be prohibited (the "Prohibited Transferees") (a "THIRD
PARTY PURCHASER"), such Selling Stockholder shall offer such Shares first to the
Company, by sending written notice (the "OFFERING NOTICE") to the Company, which
shall state (a) the number of Shares proposed to be transferred (the "OFFERED
SECURITIES") and (b) the proposed purchase price per Share which the Selling
Stockholder is willing to accept (the "OFFER PRICE"). Upon delivery of the
Offering Notice, such offer shall be irrevocable unless and until the rights of
first offer provided for herein shall have been waived or shall have expired.

                              2.2.2 OPTION: EXERCISE. For a period of sixty
(60) days after the giving of the Offering Notice pursuant to Section 2.2.1
(the "OPTION PERIOD"), the Company and/or its Designees (the "DESIGNEES")
shall have the right (the "OPTION") to purchase all of the Offered Securities
at a purchase price equal to the Offer Price and upon the terms and
conditions set forth in the Offering Notice. The right of the Company and/or
its Designees to purchase any or all of the Offered Securities under this
Section 2.2.2 shall be exercisable by delivering written notice of the
exercise thereof, prior to the expiration of the 60-day period referred to
above, to the Selling Stockholder, which notice shall state the purchaser of
the Shares and the number of Offered Securities proposed to be purchased by
such purchaser. The failure of the Company and/or the Designees, if any, to
respond within such 60-day period shall be deemed to be a waiver of the
Company's and the Designees' rights under this Section 2.2.2, PROVIDED that
the Company and/or the Designees may waive their rights under this Section
2.2.2 prior to the expiration of such 60-day period by giving written notice
to the Selling Stockholder.

                              2.2.3 CLOSING. The closing of the purchases of
Offered Securities subscribed for by the Company and/or the Designees under
Section 2.2.2 shall be held

                                       A-2

<PAGE>

at the principal office of the Company at 11:00 a.m., local time, on the
seventy-fifth (75th) day after the giving of the Offering Notice pursuant to
Section 2.2.1 or at such other time and place as the parties to the
transaction may agree. At such closing, the Selling Stockholder shall deliver
certificates representing the Offered Securities, duly endorsed for transfer
and accompanied by all requisite transfer taxes, if any, and such Offered
Securities shall be free and clear of any Liens (other than those arising
hereunder and those attributable to actions by the purchasers) and the
Selling Stockholder shall so represent and warrant, and further represent and
warrant that it, he, or she is the sole beneficial and record owner of such
Offered Securities. The Company and/or the Designees, shall deliver at the
closing payment in full in immediately available funds for the Offered
Securities purchased by it, him or her. At such closing, all of the parties
to the transaction shall execute such additional documents as are otherwise
necessary or appropriate.

                              2.2.4 SALE TO A THIRD PARTY PURCHASER. If
neither the Company nor the Designees elect to purchase all, but not less
than all, of the Offered Securities under Section 2.2.2, the Selling
Stockholder may, subject to Section 2.3 sell the Offered Securities to a
Third Party Purchaser on the terms and conditions set forth in the Offering
Notice; PROVIDED, HOWEVER, that such sale is bona fide and made pursuant to a
contract entered into within forty-five (45) days of the earlier to occur of
(a) the waiver by the Company and/or the Designees of their respective
options to purchase the Offered Securities and (b) the expiration of the
Option Period (the earlier of such dates being referred to herein as the
"CONTRACT DATE"); and PROVIDED FURTHER, that such sale shall not be
consummated unless and until all of the following conditions are met:

                                     (a) The Selling Stockholder shall deliver
         to the Company a certificate of a Third Party Purchaser, in form and
         substance reasonably satisfactory to the Company, stating that (i)
         such Third Party Purchaser is aware of the rights of the Company,
         contained in Section 2.2 and (ii) prior to the purchase by such Third
         Party Purchaser of any of such Offered Securities, such Third Party
         Purchaser shall become a party to this Agreement and agree to be bound
         by the terms and conditions hereof in accordance with Section 1.3
         hereof.

                                      (b) A Third Party Purchaser shall have
         furnished evidence satisfactory to the Company, in its reasonable
         judgment, as to the financial ability of such Third Party Purchaser to
         consummate the proposed purchase.

If such sale is not consummated within forty-five (45) days of the Contract
Date for any reason, then the restrictions provided for herein shall again
become effective, and no transfer of such Offered Securities may be made
thereafter by the Selling Stockholder without again offering the same to the
Company, in accordance with this Section 2.2.

                          2.3 BRING ALONG RIGHT.

                              If General Atlantic Partners 41, L.P., a
Delaware limited partnership ("GAP LP"), GAP Coinvestment Partners, L.P., a
New York limited partnership ("GAP COINVESTMENT"), Lyle Baack, Nigel Bahadur,
Adam Belsky and Raymond Hood (the "EXE STOCKHOLDERS" and collectively with
GAP LP and GAP Coinvestment, the "MAJOR STOCKHOLDERS")

                                       A-3

<PAGE>

shall have received a bona fide offer from a person or other entity that is
not an affiliate of a Major Stockholder (or shall have entered into a bona
fide written agreement with such person or entity) relating to the sale to
such person or entity of all or substantially all of the issued and
outstanding securities of the Company held by the Major Stockholders (the
"SALE"), the Major Stockholders shall be entitled to deliver a notice (a
"BUYOUT NOTICE") to the Stockholder stating that they propose to effect (or
cause the Company to effect) such transaction, and specifying the name and
address of the proposed parties to such transaction, the consideration
payable in connection therewith, and attaching a copy of all writings between
the Major Stockholders (or the Company) and the other parties to such
transaction necessary to establish the terms of such transaction. The
Stockholder agrees that, upon receipt of a Buyout Notice, it, he, or she
shall be obligated to sell the Shares held by it, him, or her and to use its,
his or her best efforts to cause the Shares owned by their Permitted
Transferees to be sold upon the terms and conditions of such transaction (and
otherwise take all necessary action to cause the Company to consummate the
proposed transaction, including voting such Shares in favor of such
transaction), PROVIDED, that, the Stockholder shall only be obligated as
provided above in this Section 2.3 if the Stockholder and its, his, or her
Permitted Transferee receives the same per Share consideration as the Major
Stockholders and all other stockholders selling shares of the Company in the
Sale.

                  3. RESTRICTIONS ON PUBLIC SALE BY HOLDERS. If and to the
extent requested by the Company or other holders of Company securities
exercising registration rights, as the case may be, in the case of a
non-underwritten public offering or if and to the extent requested by the
underwriter, in the case of an underwritten public offering, Stockholder
agrees not to effect any sale or distribution of any Shares or of any
securities convertible into or exchangeable or exercisable for such Shares,
including without limitation a sale pursuant to Rule 144 under the Securities
Act, during the 90-day period (180-day period in the case of an Initial
Public Offering) or such shorter period agreed upon by such Holder and the
requesting party beginning on the effective date of such Registration
Statement (except as part of such registration).

                  4.  MISCELLANEOUS.

                      4.1 STOCK CERTIFICATE LEGEND. A copy of this Agreement
shall be filed with the Secretary of the Company and kept with the records of
the Company. Each certificate representing Shares now held or hereafter
acquired by any Stockholder shall for as long as this Agreement is effective
bear legends substantially in the following forms:

         THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
         UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR THE
         SECURITIES LAWS OF ANY STATE. THE SECURITIES MAY NOT BE TRANSFERRED
         EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT
         AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN APPLICABLE
         EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF SUCH ACT AND SUCH LAWS
         OR PURSUANT TO A WRITTEN OPINION OF COUNSEL FOR THE COMPANY THAT SUCH
         REGISTRATION IS NOT REQUIRED.

         THE SALE, ASSIGNMENT, HYPOTHECATION, PLEDGE, ENCUMBRANCE OR

                                       A-4

<PAGE>

         OTHER DISPOSITION (EACH A "TRANSFER") AND VOTING OF ANY OF THE
         SECURITIES REPRESENTED BY THIS CERTIFICATE ARE RESTRICTED BY THE TERMS
         OF THE STOCKHOLDERS AGREEMENT, DATED ____________, BETWEEN EXE
         TECHNOLOGIES, INC. (THE "COMPANY") AND THE STOCKHOLDER NAMED THEREIN, A
         COPY OF WHICH MAY BE INSPECTED AT THE COMPANY'S PRINCIPAL OFFICE. THE
         COMPANY WILL NOT REGISTER THE TRANSFER OF SUCH SECURITIES ON THE BOOKS
         OF THE COMPANY UNLESS AND UNTIL THE TRANSFER HAS BEEN MADE IN
         COMPLIANCE WITH THE TERMS OF THE STOCKHOLDERS AGREEMENT.

                           4.2 NOTICES. All notices, demands or other
communications provided for or permitted hereunder shall be made in writing
and shall be by registered or certified first class mail, return receipt
requested, courier service, overnight mail or personal delivery:

                           (a)      if to the Company:

                                    EXE Technologies, Inc.
                                    8787 Stemmons Freeway
                                    Dallas, Texas 75247
                                    Attention: Chief Financial Officer

                           (b)      if to the Major Stockholders to each of
                                    them:

                                    EXE Technologies, Inc.
                                    8787 Stemmons Freeway
                                    Dallas, Texas 75247

                            (c)     if to GAP LP or GAP Coinvestment:

                                    c/o General Atlantic Service Corporation
                                    3 Pickwick Plaza
                                    Greenwich, Connecticut 06830
                                    Attention:  Mr. Steven A. Denning

                           (d)      if to the Stockholder, to its, his, or her
                                    address as it appears in the record books of
                                    the Company.

Any party may, by notice given in accordance with this Section 4.2, designate
another address or Person for receipt of notices hereunder. All such notices
and communications shall be deemed to have been duly given when delivered by
hand, if personally delivered; when delivered by courier or overnight mail,
if delivered by commercial courier service or overnight mail; and five (5)
business days after being deposited in the mail, postage prepaid, if mailed.

                           4.3 SUCCESSORS AND ASSIGNS. This Agreement shall
be binding upon and inure to the benefit of the parties and their respective
successors, heirs, legatees and legal

                                       A-5

<PAGE>

representatives. This Agreement is not assignable except in connection with a
transfer of Shares in accordance with this Agreement.

                           4.4 AMENDMENT AND WAIVER.

                               (a) No failure or delay on the part of any
party hereto in exercising any right, power or remedy hereunder shall operate
as a waiver thereof, nor shall any single or partial exercise of any such
right, power or remedy preclude any other or further exercise thereof or the
exercise of any other right, power or remedy. The remedies provided for
herein are cumulative and are not exclusive of any remedies that may be
available to the parties hereto at law, in equity or otherwise.

                                (b) Any amendment, supplement or modification
of or to any provision of this Agreement, any waiver of any provision of this
Agreement, and any consent to any departure by any party from the terms of
any provision of this Agreement, shall be effective only if (i) it is made or
given in writing, (ii) signed by all the parties thereto, and (iii) only in
the specific instance and for the specific purpose for which made or given.
Any such amendment, supplement, modification, waiver or consent shall be
binding upon the Company, the Major Stockholders, and the Stockholder.

                           4.5 COUNTERPARTS. This Agreement may be executed
in one or more counterparts, each of which shall be deemed an original, and
all of which taken together shall constitute one and the same instrument.

                           4.6 GOVERNING LAW. This agreement shall be
governed and construed in accordance with the laws of the State of Delaware,
without regard to the principles of conflicts of law of any jurisdiction.

                           4.7 SEVERABILITY. If any one or more of the
provisions contained herein, or the application thereof in any circumstance,
is held invalid, illegal or unenforceable in any respect for any reason, the
validity, legality and enforceability of any such provision in every other
respect and of the remaining provisions hereof shall not be in any way
impaired, unless the provisions held invalid, illegal or unenforceable shall
substantially impair the benefits of the remaining provisions hereof.

                           4.8 ENTIRE AGREEMENT. This Agreement is intended
by the parties as a final expression of their agreement and intended to be a
complete and exclusive statement of the agreement and understanding of the
parties hereto in respect of the subject matter contained herein and therein.
There are no restrictions, promises, warranties or undertakings, other than
those set forth or referred to herein or therein. This Agreement, together
with the exhibits hereto, supersede all prior agreements and understandings
between the parties with respect to such subject matter.

                           4.9 TERM OF AGREEMENT. This Agreement shall become
effective upon the execution hereof and shall terminate upon the earlier of:
(i) the date on which the Company commences a firm commitment underwritten
initial public offering pursuant to an effective Registration Statement filed
pursuant to the Securities Act of 1933, as amended, and the rules

                                       A-6

<PAGE>

and regulations promulgated thereunder and (ii) the closing of an acquisition
or merger transaction involving the Company in which the Company is not the
surviving entity and the stockholders of the Company prior to the transaction
own less than 50% of the outstanding stock of the surviving entity; provided,
however, that Sections 3 and 4 hereof shall survive termination of this
Agreement.

                           4.10 SUCCESSORS AND ASSIGNS, THIRD PARTY
BENEFICIARIES. This Agreement shall inure to the benefit of and be binding upon
the successors and permitted assigns of the parties hereto. Except for the
Designees and the Major Stockholders, no person other than the parties hereto
and their successors and permitted assigns is intended to be a beneficiary of
any of the rights granted hereunder.

                           4.11 FURTHER ASSURANCES. Each of the parties shall,
and shall cause their respective Affiliates to, execute such instruments and
take such action as may be reasonably required or desirable to carry out the
provisions hereof and the transactions contemplated hereby.

                  IN WITNESS WHEREOF, the undersigned have executed, or have
cause to be executed, this Agreement on the date first written above.

                                         EXE TECHNOLOGIES, INC.

                                         By:_______________________________
                                              Name:
                                              Title:

                                         __________________________________
                                         Stockholder

                                       A-7Prepared by MERRILL CORPORATION www.edgaradvantage.com

QuickLinks
 -- Click here to rapidly navigate through this document
 

MLA
No. Z269 

  MASTER LOAN AGREEMENT         

    THIS MASTER LOAN AGREEMENT is entered into as of March 31, 2000, between CoBANK,
ACB ("CoBank", successor by merger to the St. Paul Bank for Cooperatives) and AMERICAN CRYSTAL SUGAR COMPANY, Moorhead,
Minnesota (the "Company"). 

  BACKGROUND         

    On March 5, 1999, the St. Paul Bank for Cooperatives ("SPB") entered into a Seasonal Loan Agreement (the "Seasonal Loan Agreement") and a Term Loan
Agreement (the "Term Loan Agreement") (collectively, the "Existing Loan Agreements") with the Company. Under the Seasonal Loan Agreement, SPB made various seasonal loans to the Company, each of which
was evidenced by a promissory note. Under the Term Loan Agreement, SPB made various term loans, each of which was also evidenced by a promissory note. Subsequently, SPB merged with and into CoBank.
CoBank and the Company now desire to amend and restate the Existing Loan Agreements and consolidate the Existing Loan Agreements into this Master Loan Agreement. CoBank and the Company also desire to
amend and restate the promissory notes evidencing the seasonal loans and term loans made pursuant to the Existing Loan Agreements by entering into various Supplements in place of the promissory notes.
Each Supplement will set forth the amount of the loan, the purpose of the loan, the interest rate or rate options applicable to that loan, the repayment terms of the loan, and any other terms and
conditions applicable to that particular loan. Each loan will be governed by the terms and conditions contained in this Master Loan Agreement and in the Supplement relating to the loan. Collateral
securing loans made pursuant to the Existing Loan Agreements shall continue to secure those same loans, all as now evidenced by various Supplements, to the same extent as provided for in the Existing
Loan Agreements and any security agreements (including, without limitation, mortgages and deeds of trust) entered into in connection therewith. 

    SECTION 1.  Supplements.  In addition to those Supplements entered into to amend and restate the
promissory notes executed in connection with the Existing Loan Agreements, the parties may enter into other Supplements in order to evidence new loans that CoBank may make to the Company. Each
Supplement will set forth the amount of the loan, the purpose of the loan, the interest rate or rate
options applicable to that loan, the repayment terms of the loan, and any other terms and conditions applicable to that particular loan. Each loan will be governed by the terms and conditions
contained in this Master Loan Agreement and in the Supplement relating to the loan. 

    SECTION 2.  Availability.  Loans will be made available on any day on which CoBank and the Federal
Reserve Banks are open for business upon the telephonic or written request of the Company. Requests for loans must be received no later than 12:00 noon Company's local time on the date the loan is
desired. Loans will be made available by wire transfer of immediately available funds to such account or accounts as may be authorized by the Company. The Company shall furnish to CoBank a duly
completed and executed copy of a CoBank Delegation and Wire and Electronic Transfer Authorization Form, and CoBank shall be entitled to rely on (and shall incur no liability to the Company in acting
on) any request or direction furnished in accordance with the terms thereof. 

    SECTION 3.  Repayment.  The Company's obligation to repay each loan shall be evidenced by the promissory
note set forth in the Supplement relating to that loan or by such replacement note as CoBank shall require. CoBank shall maintain a record of all loans, the interest accrued thereon, and all payments
made with respect thereto, and such record shall, absent proof of manifest error, be conclusive evidence of the outstanding principal and interest on the loans. All payments shall be made by wire
transfer of immediately available funds or by check. Wire transfers shall be made to ABA No. 307088754 for advice to and credit of CoBANK (or to such other account as CoBank may direct by
notice). The Company shall 

1

give CoBank telephonic notice no later than 12:00 noon Company's local time of its intent to pay by wire and funds received after 3:00 p.m. Company's local time shall be credited on the next
business day. Checks shall be mailed to CoBank, Department 167, Denver, Colorado, 80291-0167 (or to such other place as CoBank may direct by notice). Credit for payment by check will not
be given until the latter of: (a) the day on which CoBank receives immediately available funds; or (b) the next business day after receipt of the check. 

    SECTION 4.  Capitalization.  The Company agrees to purchase such equity in CoBank as CoBank may from time
to time require in accordance with its Bylaws. However, the maximum amount of equity which the Company shall be obligated to purchase in connection with any loan may not exceed the maximum amount
permitted by the Bylaws at the time the Supplement relating to that loan is entered into or such loan is renewed or refinanced by CoBank. 

    SECTION 5.  Security.  The Company's obligations under this agreement, all Supplements (whenever
executed), and all instruments and documents contemplated hereby or thereby, shall be secured by a statutory first lien on all equity which the Company may now own or hereafter acquire in CoBank. This
security shall be in addition to any other security that may otherwise be required or provided. 

    SECTION 6.  Conditions Precedent.  

    (A) Conditions to Initial Supplement.  CoBank's obligation to extend credit under the initial Supplement
hereto is subject to the conditions precedent that CoBank receive, in form and substance satisfactory to CoBank, each of the following: 

     (i) This Agreement, Etc.  A duly executed copy of this agreement and all instruments and documents
contemplated hereby. 

    (ii) Opinion of Counsel.  A favorable opinion from the Company's counsel addressed to CoBank covering
each matter as CoBank may reasonably require. 

   (iii) Evidence of Authority.  Such certified board resolutions, evidence of incumbency, and other
evidence that CoBank may require that the Supplement, all instruments and documents executed in connection therewith, and, in the case of initial Supplement hereto, this agreement and all instruments
and documents executed in connection herewith, have been duly authorized and executed. 

    (B) Conditions to Each Supplement.  CoBank's obligation to extend credit under each Supplement, including
the initial Supplement, is subject to the conditions precedent that CoBank receive, in form and content satisfactory to CoBank, each of the following: 

     (i) Supplement.  A duly executed copy of the Supplement and all instruments and documents contemplated
thereby. 

    (ii) Fees and Other Charges.  All fees and other charges specifically permitted by this Master Loan
Agreement or the Supplements, as well as reasonable expenses for outside counsel. 

   (iii) Evidence of Perfection, Etc.  Such evidence as CoBank may require that CoBank has a duly perfected
first priority lien on all security for the Company's obligations, and that the Company is in compliance with Section 8(D) hereof. 

    (C) Conditions to Each Loan.  CoBank's obligation under each Supplement to make any loan to the Company
thereunder is subject to the condition that no "Event of Default" (as defined in Section 11 hereof) or event which with the giving of notice and/or the passage of time would become an Event of
Default hereunder (a "Potential Default"), shall have occurred and be continuing. 

2

    SECTION 7.  Representations and Warranties.  

    (A) This Agreement.  The Company represents and warrants to CoBank that as of the date of this Agreement: 

     (i) Compliance.  The Company is in compliance with all of the terms of this agreement, and no Event of
Default or Potential Default exists hereunder. 

    (B) Each Supplement.  The execution by the Company of each Supplement hereto shall constitute a
representation and warranty to CoBank that: 

     (i) Applications.  Each representation and warranty and all information set forth in any application or
other documents submitted in connection with, or to induce CoBank to enter into, such Supplement, is correct in all material respects as of the date of the Supplement. 

    (ii) Conflicting Agreements, Etc.  This agreement, the Supplements, and all security and other
instruments and documents relating hereto and thereto (collectively, at any time, the "Loan Documents"), do not conflict with, or require the consent of any party to, any other agreement to which the
Company is
a party or by which it or its property may be bound or affected, and do not conflict with any provision of the Company's bylaws, articles of incorporation, or other organizational documents. 

   (iii) Compliance.  The Company is in compliance with all of the terms of the Loan Documents (including,
without limitation, Section 8(A) of this agreement on eligibility to borrow from CoBank). 

    (iv) Binding Agreement.  The Loan Documents create legal, valid, and binding obligations of the Company
which are enforceable in accordance with their terms, except to the extent that enforcement may be limited by applicable bankruptcy, insolvency, or similar laws affecting creditors' rights generally. 

    SECTION 8.  Affirmative Covenants.  Unless otherwise agreed to in writing by CoBank, while this agreement
is in effect, the Company agrees to: 

    (A) Eligibility.  Maintain its status as an entity eligible to borrow from CoBank. 

    (B) Corporate Existence, Licenses. Etc.  (i) Preserve and keep in full force and effect its
existence and good standing in the jurisdiction of its incorporation or formation; (ii) qualify and remain qualified to transact business in all jurisdictions where such qualification is
required; and (iii) obtain and maintain all licenses, certificates, permits, authorizations, approvals, and the like which are material to the conduct of its business or required by law, rule,
regulation, ordinance, code, order, and the like (collectively, "Laws"). 

    (C) Compliance with Laws.  Comply in all material respects with all applicable Laws, including, without
limitation, all Laws relating to environmental protection and any patron or member investment program that it may have. In addition, the Company agrees to cause all persons occupying or present on any
of its properties to comply in all material respects with all environmental protection Laws. 

    (D) Insurance.  Maintain insurance with insurance companies or associations acceptable to CoBank in such
amounts and covering such risks as are usually carried by companies engaged in the same or similar business and similarly situated, and make such increases in the type or amount of coverage as CoBank
may request. All such policies insuring any collateral for the Company's obligations to CoBank shall have mortgagee or lender loss payable clauses or endorsements in form and content acceptable to
CoBank. At CoBank's request, all policies (or such other proof of compliance with this Subsection as may be satisfactory to CoBank) shall be delivered to CoBank. 

    (E) Property Maintenance.  Maintain all of its property that is necessary to or useful in the proper
conduct of its business in good working condition, ordinary wear and tear excepted. 

    (F) Books and Records.  Keep adequate records and books of account in which complete entries will be made
in accordance with generally accepted accounting principles ("GAAP") consistently applied. 

3

    (G) Inspection.  Permit CoBank or its agents, upon reasonable notice and during normal business hours or
at such other times as the parties may agree, to examine its properties, books, and records, and to discuss its affairs, finances, and accounts, with its respective officers, directors, employees, and
independent certified public accountants. 

    (H) Reports and Notices.  Furnish to CoBank: 

     (i) Annual Financial Statements.  As soon as available, but in no event more than 120 days after
the end of each fiscal year of the Company occurring during the term hereof, annual financial statements of the Company prepared in accordance with GAAP consistently applied. Such financial statements
shall: (a) be audited by independent certified public accountants selected by the Company and acceptable to CoBank; (b) be accompanied by a report of such accountants containing an
opinion thereon acceptable to CoBank; (c) be prepared in reasonable detail and in comparative form; and (d) include a balance sheet, a statement of income, a statement of retained
earnings, a statement of cash flows, and all notes and schedules relating thereto. 

    (ii) Interim Financial Statements.  As soon as available, but in no event more than 5 days after
the filing with the Securities Exchange Commission, after the end of each quarter, a balance sheet of the Company as of the end of such fiscal quarter, a statement of income for the Company for such
period and for the period year to date, and such other interim statements as CoBank may specifically request, all prepared in reasonable detail and in comparative form in accordance with GAAP
consistently applied. 

   (iii) Annual Budgets.  As soon as available, but in no event more than 60 days after the end of
any fiscal year of the Company occurring during the term hereof, copies of the Company's annual budgets and forecasts of operations. 

    (iv) Capital Expenditures Budget:  The Company will furnish an annual capital expenditure budget, within
60 days after the end of each fiscal year. The Company will also furnish a revised budget if increases over the original capital expenditure budget are approved by the board of directors. 

    (v) Notice of Default.  Promptly after becoming aware thereof, notice of the occurrence of an Event of
Default or a Potential Default. 

    (vi) Notice of Non-Environmental Litigation.  Promptly after the commencement thereof, notice
of the commencement of all actions, suits, or proceedings before any court, arbitrator, or governmental department, commission, board, bureau, agency, or instrumentality affecting the Company which,
if determined adversely to the Company, could have a material adverse effect on the financial condition, properties, profits, or operations of the Company. 

   (vii) Notice of Environmental Litigation, Etc.  Promptly after receipt thereof, notice of the receipt of
all pleadings, orders, complaints, indictments, or any other communication alleging a condition that may require the Company to undertake or to contribute to a cleanup or other response under
environmental Laws, or which seek penalties, damages, injunctive relief, or criminal sanctions related to alleged violations of such Laws, or which claim personal injury or property damage to any
person as a result of environmental factors or conditions. 

  (viii) Bylaws and Articles.  Promptly after any change in the Company's bylaws or articles of
incorporation (or like documents), copies of all such changes, certified by the Company's Secretary. 

    (ix) Other Information.  Such other information regarding the condition or operations, financial or
otherwise, of the Company as CoBank may from time to time reasonably request, including but not limited to copies of all pleadings, notices, and communications referred to in Subsections
8(H)(vi) and (vii) above. 

4

    (x) Officer Certificate.  A quarterly officers certificate within 45 days of each fiscal quarter
end, in a form acceptable to CoBank, certified by an officer of the Company, that measures compliance with Minimum Net Working Capital; Long Term Debt Coverage and Long Term Debt to Capitalization.
(Section 10 (A) & (B) & (C)). 

    (I) Grower Agreements.  The Company shall abide by the terms and conditions of its member grower
agreements; make no material amendments or changes to the agreements without the written consent of the Bank; and extend the agreements for an additional five years when the current contracts expire. 

    (J) Crystech, L.L.C. ("Crystech").  Cause to be furnished to CoBank: 

     (i) Annual Financial Statements.  As soon as available, but in no event more than 120 days after
the end of each fiscal year of Crystech occurring during the term hereof, annual financial statements of Crystech prepared in accordance with GAAP consistently applied. Such financial statements
shall: (a) be audited by independent certified public accountants selected by Crystech and acceptable to CoBank; (b) be accompanied by a report of such accountants containing an opinion
thereon acceptable to CoBank; (c) be prepared in reasonable detail and in comparative form; and (d) include a balance sheet, a statement of income, a statement of retained earnings, a
statement of cash flows, and all notes and schedules relating thereto. 

    (ii) Interim Financial Statements.  As soon as available, but in no event more than 60 days after
the end of each quarter, a balance sheet of Crystech as of the end of such fiscal quarter, a statement of income for Crystech for such period and for the period year to date, and such other interim
statements as CoBank may specifically request, all prepared in reasonable detail and in comparative form in accordance with GAAP consistently applied. 

   (iii) Examinations.  Such examination of Crystech's books and records as CoBank may reasonably request. 

    (K) Annual Paydown.  The Company will paydown all short term loans to $80,000,000 or less for a period of
30 consecutive days during the calendar year. Total short term loans includes the seasonal loans, Commodity Credit Corporation loans, commercial paper, overdraft loans with original maturity dates of
one year or less. Total short term loans excludes current maturities of long term debt. 

    SECTION 9.  Negative Covenants.  Unless otherwise agreed to in writing by CoBank, while this agreement is
in effect the Company will not: 

    (A) Borrowings.  Create, incur, assume, or allow to exist, directly or indirectly, any indebtedness or
liability for borrowed money (including trade or bankers' acceptances), letters of credit, or the deferred purchase price of property or services (including capitalized leases), except for:
(i) debt to CoBank; (ii) accounts payable to trade creditors incurred in the ordinary course of business; (iii) current operating liabilities (other than for borrowed money)
incurred in the ordinary course of business; and (iv) permitted borrowings identified on Attachment A. 

    (B) Liens.  Create, incur, assume, or allow to exist any mortgage, deed of trust, pledge, lien (including
the lien of an attachment, judgment, or execution), security interest, or other encumbrance of any kind upon any of its property, real or personal (collectively, "Liens"). The foregoing restrictions
shall not apply to: (i) Liens in favor of CoBank; (ii) Liens for taxes, assessments, or governmental charges that are not past due; (iii) Liens and deposits under workers'
compensation, unemployment insurance, and social security Laws; (iv) Liens and deposits to secure the performance of bids, tenders, contracts (other than contracts for the payment of money),
and like obligations arising in the ordinary course of business as conducted on the date hereof; (v) Liens imposed by Law in favor of mechanics, materialmen, warehousemen, and like persons that
secure obligations that are not past due or that are being contested in good faith by the Company; and (vi) easements, rights-of-way, restrictions, and other similar
encumbrances which, in the aggregate, do not materially interfere with the occupation, use, and enjoyment of the property or assets 

5

encumbered thereby in the normal course of its business or materially impair the value of the property subject thereto except for the permitted liens identified on Attachment B, without the prior
written consent of the Bank. In addition, the Company agrees that it will not agree to a negative pledge with any other lender or third party. 

    (C) Mergers, Acquisitions, Etc.  Merge or consolidate with any other entity or acquire all or a material
part of the assets of any person or entity, or form or create any new subsidiary or affiliate, or commence operations under any other name, organization, or entity, including any joint venture. 

    (D) Transfer of Assets.  Sell, transfer, lease, or otherwise dispose of any of its assets, except in the
ordinary course of business. 

    (E) Loans.  Lend or advance money, credit, or property to any person or entity, except for trade credit
extended in the ordinary course of business and certain inter-company loans made pursuant to Intercompany Loan/Security Agreement dated August 31, 1997 and successor agreements. 

    (F) Contingent Liabilities.  Assume, guarantee, become liable as a surety, endorse, contingently agree to
purchase, or otherwise be or become liable, directly or indirectly (including, but not limited to, by means of a maintenance agreement, an asset or stock purchase agreement, or any other agreement
designed to ensure any creditor against loss), for or on account of the obligation of any person or entity, except by the endorsement of negotiable instruments for deposit or collection or similar
transactions in the ordinary course of the Company's business and except for any liability on account of a guaranty of indebtedness of Midwest Agri Commodities. 

    (G) Change in Business.  Engage in any business activities or operations substantially different from or
unrelated to the Company's present business activities or operations. 

    SECTION 10.  Financial Covenants.  Unless otherwise agreed to in writing, while this agreement is in
effect: 

    (A) Minimum Net Working Capital. The Company shall maintain minimum at all times and measured as of the end of each
Fiscal Quarter a ratio of Current Assets less Current Liabilities of not less than $35,000,000. 

    (B) Long Term Debt to Capitalization.  The Company shall maintain at all times and measured as of the end
of each Fiscal Quarter a ratio of Long Term Debt divided by the sum of Long Term Debt plus Equity of no greater than fifty-five percent (55%). 

    (C) Long Term Debt Coverage.  The Company shall maintain at all times and measured as of the end of each
Fiscal Quarter a ratio of Long Term Debt to Average Net Funds Generated during the most recent three Fiscal Years of not greater than six (6) times. 

    (D) Definitions.  For purposes of this Section 10 and this Master Loan Agreement, the following
terms shall be defined as follows: 

     (i) Average Net Funds Generated.  Average Net Funds Generated is the sum of the following for the most
recent three fiscal years divided by three (3). 

    Add:  Unit Retains; Depreciation and amortization; Net income from non-member business and member business
tax timing differences; Decrease in investments in other cooperatives (excluding subsidiaries); and Net revenue from sale of stock. 

    Minus:  Increase in investments in other cooperatives (excluding subsidiaries); Net loss from non-member
business and member business tax timing differences; Provision for income tax; and Members' investment retirements. 

6

    (ii) Borrowing Base.  A maximum dollar amount available to the Borrower under the terms of the Commitment
(as set forth in a Supplement) as determined on the basis of the most recent Borrowing Base Certificate. 

   (iii) Borrowing Base Certificate.  A certification of the value of specified assets of the Borrower used
in computing the Borrowing Base. 

    (iv) Capitalization.  The sum of long term debt plus equity as determined in accordance with GAAP. 

    (v) Current Assets.  The current assets of the Borrower as measured in accordance with GAAP. 

    (vi) Current Liability.  The current liabilities of the Borrower as measured in accordance with GAAP. 

   (vii) Depreciation.  Total depreciation of the Borrower as measured in accordance with GAAP. 

  (viii) Debt.  Debt means as to any Person: (a) indebtedness or liability of such Person for
borrowed money, or for the deferred purchase price of property or services; (b) obligations of such Person as lessee under capital leases; (c) obligations of such Person arising under
bankers' or trade acceptance facilities; (d) all guarantees, endorsements (other than for collection or deposit in the ordinary course of business), and other contingent obligations of such
Person to purchase any of the items included in this definition, to provide funds for payment, to supply funds to invest in any other Person, or otherwise to assure a creditor of another Person
against loss; (e) all obligations secured by a lien on property owned by such Person, whether or not the obligations have been assumed; and (f) all obligations of such Person under any
agreement providing for an interest rate swap, cap, cap and floor, contingent participation or other hedging mechanisms with respect to interest payable on any of the items described in this
definition. 

    (ix) Equity.  Total equity of the Borrower as measured in accordance with GAAP. 

    (x) Fiscal Quarter.  Each three (3) month period beginning on the first day of each of the
following months: September, December, March and June. 

    (xi) Fiscal Year.  A year commencing on September 1 and ending on August 31. 

   (xii) GAAP.  Generally accepted accounting principles in effect from time to time. 

  (xiii) Interest Expense.  Current cost of borrowing funds that is shown as a financial expense in the
income statement and as measured in accordance with GAAP. 

   (xiv) Long Term Debt.  The long term debt (excluding current maturities) as determined in accordance with
GAAP. 

   (xv) Net Realizable Value.  The expected selling price of an inventory item less expected costs to
complete and dispose, as determined in accordance with GAAP. 

   (xvi) Net Working Capital.  Shall mean the Total Current Assets minus the Total Current Liabilities of
the Borrower as determined in accordance with GAAP accounting principles, consistently applied. 

  (xvii) Person.  Person shall mean any individual, sole proprietorship, partnership, joint venture, trust,
unincorporated organization, association, corporation, limited liability company, cooperative association, institution, entity, party or government (whether national, federal, state, provincial,
country, city, municipal or otherwise, including without limitation, and instrumentality, division, agency, body or department thereof). 

  (xviii) Subsidiary.  Subsidiary shall mean with respect to any Person: (a) any corporation in
which such Person, directly or indirectly, (i) owns more than fifty percent (50%) of the outstanding stock 

7

thereof, or (ii) has the power under ordinary circumstances to elect at least a majority of the directors thereof, or (b) any partnership, association, joint venture, limited liability
company, or other unincorporated organization or entity with respect to which such Person, directly or indirectly, owns an equity interest in an amount sufficient to control the management thereof. 

    SECTION 11.  Events of Default.  Each of the following shall constitute an "Event of Default" under this
agreement: 

    (A) Payment Default.  The Company should fail to make any payment to, or to purchase any equity in,
CoBank when due. Any payment received by CoBank after its due date shall not be subject to an increase in the interest rate, as provided for in Section 12 below, if the Company is not
responsible for the payment delay. 

    (B) Representations and Warranties.  Any representation or warranty made or deemed made by the Company
herein or in any Supplement, application, agreement, certificate, or other document related
to or furnished in connection with this agreement or any Supplement, shall prove to have been false or misleading in any material respect on or as of the date made or deemed made. 

    (C) Certain Affirmative Covenants.  The Company should fail to perform or comply with Sections 8(A)
through 8(H)(ii), 8(H)(viii), or any reporting covenant set forth in any Supplement hereto, and such failure continues for 15 days after written notice thereof shall have been delivered by
CoBank to the Company. 

    (D) Other Covenants and Agreements.  The Company should fail to perform or comply with any other covenant
or agreement contained herein or in any other Loan Document or shall use the proceeds of any loan for an unauthorized purpose. 

    (E) Cross-Default.  The Company should, after any applicable grace period, breach or be in default under
the terms of any other agreement between the Company and CoBank. 

    (F) Other Indebtedness.  The Company should fail to pay when due any indebtedness to any other person or
entity for borrowed money or any long-term obligation for the deferred purchase price of property (including any capitalized lease), or any other event occurs which, under any agreement or
instrument relating to such indebtedness or obligation, has the effect of accelerating or permitting the acceleration of such indebtedness or obligation, whether or not such indebtedness or obligation
is actually accelerated or the right to accelerate is conditioned on the giving of notice, the passage of time, or otherwise. 

    (G) Judgments.  A judgment, decree, or order for the payment of money shall be rendered against the
Company in an amount which, if enforced, would have a material adverse effect on the financial condition, profits or operations of the Compay, or a Lien prohibited under Section 9(B) hereof
shall have been obtained and shall continue in effect for a period of 20 consecutive days without being discharged, satisfied, or stayed pending appeal. 

    (H) Insolvency, Etc.  The Company shall: (i) become insolvent or shall generally not, or shall be
unable to, or shall admit in writing its inability to, pay its debts as they come due; or (ii) suspend its business operations or a material part thereof or make an assignment for the benefit
of creditors; or (iii) apply for, consent to, or acquiesce in the appointment of a trustee, receiver, or other custodian for it or any of its property or, in the absence of such application,
consent, or acquiescence, a trustee, receiver, or other custodian is so appointed; or (iv) commence or have commenced against it any proceeding under
any bankruptcy, reorganization, arrangement, readjustment of debt, dissolution, or liquidation Law of any jurisdiction. 

    (I) Material Adverse Change.  Any material adverse change occurs, as reasonably determined by CoBank, in
the Company's financial condition, results of operation, or ability to perform its obligations hereunder or under any instrument or document contemplated hereby. 

8

    (J) Guaranties.  The Company's agreement to guaranty, assume, or provide surety of other entities'
financial obligations shall not exceed an aggregate amount greater than 10% of the Company's net worth, without the Bank's prior written consent. 

    SECTION 12.  Remedies.  Upon the occurrence and during the continuance of an Event of Default or any
Potential Default, CoBank shall have no obligation to continue to extend credit to the Company and may discontinue doing so at any time without prior notice. CoBank shall promptly notify the Company
subsequent to any action to discontinue extending credit to the Company. In addition, upon the occurrence and during the continuance of any Event of Default, CoBank may, upon notice to the Company,
terminate any commitment and declare the entire unpaid principal balance of the loans, all accrued interest thereon, and all other amounts payable under this agreement, all Supplements, and the other
Loan Documents to be immediately due and payable. Upon such a declaration, the unpaid principal balance of the loans and all such other amounts shall become immediately due and payable, without
protest, presentment, demand, or further notice of any kind, all of which are hereby expressly waived by the Company. In addition, upon such an acceleration: 

    (A) Enforcement.  CoBank may proceed to protect, exercise, and enforce such rights and remedies as may be
provided by this agreement, any other Loan Document or under Law. Each and every one of such rights and remedies shall be cumulative and may be exercised from time to time, and no failure on the part
of CoBank to exercise, and no delay in exercising, any right or remedy shall operate as a waiver thereof, and no single or partial exercise of any right or remedy shall preclude any other or future
exercise thereof, or the exercise of any other right. Without limiting the foregoing, CoBank may hold and/or set off and apply against the Company's obligations to CoBank the proceeds of any equity in
CoBank, any cash collateral held by CoBank, or any balances held by CoBank for the Company's account (whether or not such balances are then due). 

    (B) Application of Funds.  CoBank may apply all payments received by it to the Company's obligations to
CoBank in such order and manner as CoBank may elect in its sole discretion. 

    In
addition to the rights and remedies set forth above: (i) if the Company fails to purchase any equity in CoBank when required or fails to make any payment to CoBank when due,
then at CoBank's option in each instance, such payment shall bear interest from the date due to the date paid at 4% per annum in excess of the rate(s) of interest that would otherwise be in effect on
that loan; and (ii) after the maturity of any loan (whether as a result of acceleration or otherwise), the unpaid principal balance of such loan (including without limitation, principal,
interest, fees and expenses) shall automatically bear interest at 4% per annum in excess of the rate(s) of interest that would otherwise be in effect on that loan. All interest provided for herein
shall be payable on demand and shall be calculated on the basis of a year consisting of 360 days. 

    SECTION 13.  Broken Funding Surcharge.  Notwithstanding any provision contained in any Supplement giving
the Company the right to repay any loan prior to the date it would otherwise be due and payable, the Company agrees that in the event it repays any fixed rate balance prior to its scheduled due date
or prior to the last day of the fixed rate period applicable thereto (whether such payment is made voluntarily, as a result of an acceleration, or otherwise), the Company will pay to CoBank a
surcharge in an amount which would result in CoBank being made whole (on a present value basis) for the actual or imputed funding losses incurred by CoBank as a result thereof. Notwithstanding the
foregoing, in the event any fixed rate balance is repaid as a result of the Company refinancing the loan with another lender or by other means, then in lieu of the foregoing, the Company shall pay to
CoBank a surcharge in an amount sufficient (on a present value basis) to enable CoBank to maintain the yield it would have earned during the fixed rate period on the amount repaid. Such surcharges
will be calculated in accordance with methodology established by CoBank (a copy of which will be made available to the Company upon request). 

9

    SECTION 14.  Complete Agreement, Amendments.  This agreement, all Supplements, and all other instruments
and documents contemplated hereby and thereby, are intended by the parties to be a complete and final expression of their agreement. No amendment, modification, or waiver of any provision hereof or
thereof, and no consent to any departure by the Company herefrom or therefrom, shall be effective unless approved by CoBank and contained in a writing signed by or on behalf of CoBank, and then such
waiver or consent shall be effective only in the specific instance and for the specific purpose for which given. In the event this agreement is amended or restated, each such amendment or restatement
shall be applicable to all Supplements hereto. 

    SECTION 15.  Other Types of Credit.  From time to time, CoBank may issue letters of credit or extend
other types of credit to or for the account of the Company. In the event the parties desire to do so under the terms of this agreement, such extensions of credit may be set forth in any Supplement
hereto and this agreement shall be applicable thereto. 

    SECTION 16.  Applicable Law.  Except to the extent governed by applicable federal law, this agreement and
each Supplement shall be governed by and construed in accordance with the laws of the State of Colorado, without reference to choice of law doctrine. 

    SECTION 17.  Notices.  All notices hereunder shall be in writing and shall be deemed to be duly given
upon delivery if personally delivered or sent by telegram or facsimile transmission, or 3 days after mailing if sent by express, certified or registered mail, to the parties at the following
addresses (or such other address for a party as shall be specified by like notice): 

	If to CoBank, as follows:	 	If to the Company, as follows:
	CoBank, ACB

Corporate Finance

P.O. Box 5110

Denver, Colorado 80217

Fax # (303) 694-5830	 	American Crystal Sugar Company

ATTN: Treasurer

101 North 3rd Street,

Moorhead, Minnesota 56560

FAX#: (218) 236-4702

    SECTION 18.  Taxes and Expenses.  To the extent allowed by law, the Company agrees to pay all reasonable
out-of-pocket costs and expenses (including the fees and expenses of counsel retained by CoBank) incurred by CoBank in connection with the origination, administration,
collection, and enforcement of this agreement and the other Loan Documents, including, without limitation, all costs and expenses incurred in perfecting, maintaining, determining the priority of, and
releasing any security for the Company's obligations to CoBank, and any stamp, intangible, transfer, or like tax payable in connection with this agreement or any other Loan Document. 

    SECTION 19.  Effectiveness and Severability.  This agreement shall continue in effect until:
(i) all indebtedness and obligations of the Company under this agreement, all Supplements, and all other Loan Documents shall have been paid or satisfied; (ii) CoBank has no commitment
to extend credit to or for the account of the Company under any Supplement; and (iii) either party sends written notice to the other terminating this agreement. Any provision of this agreement
or any other Loan Document which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof or thereof. 

    SECTION 20.  Successors and Assigns.  This agreement, each Supplement, and the other Loan Documents shall
be binding upon and inure to the benefit of the Company and CoBank and their respective successors and assigns, except that the Company may not assign or transfer its rights or obligations under this
agreement, any Supplement or any other Loan Document without the prior written consent of CoBank. 

    SECTION 21.  Participations.  From time to time, CoBank may sell to one or more banks or other financial
institutions a participation in one or more of the loans or other extensions of credit made 

10

pursuant to this agreement. However, no such participation shall relieve CoBank of any commitment made to the Company under any Supplement hereto. In connection with the foregoing, CoBank may disclose
information concerning the Company to any participant or prospective participant, provided that such participant or prospective participant agrees to keep such information confidential. 

    IN WITNESS WHEREOF, the parties have caused this agreement to be executed by their duly authorized officers as of the date shown above. 

	CoBANK, ACB	 	AMERICAN CRYSTAL SUGAR COMPANY
	 

By	 
 	 

/s/ CASEY GARTEN   
	 
 	 

By:	 
 	 

/s/ SAMUEL WAI   

	 

Title	 
 	 

Vice President
	 
 	 

Title:	 
 	 

Treasurer

11

 

Loan
No. Z269S01A 

  STATUSED REVOLVING CREDIT SUPPLEMENT         

    THIS SUPPLEMENT to the Master Loan Agreement dated March 31, 2000 (the "MLA"), is entered into as of
April 21, 2000, between CoBANK, ACB ("CoBank") and AMERICAN CRYSTAL SUGAR COMPANY, Moorhead,
Minnesota (the "Company"), and amends and restates the Supplement dated March 31, 2000 and numbered Z269S01. 

    SECTION 1.  The Revolving Credit Facility.  On the terms and conditions set forth in the MLA and this
Supplement, CoBank agrees to make loans to the Company during the period set forth below in an aggregate principal amount not to exceed, at any one time outstanding, the lesser of the "Borrowing Base"
(as calculated pursuant to the Borrowing Base Certificate, the form of which is attached hereto as Exhibit A) or $210,000,000.00 (the "Commitment"). Within the limits of the Commitment, but
subject to the Borrowing Base, the Company may borrow, repay and reborrow. 

    SECTION 2.  Purpose and Transfer.  The purpose of the Commitment is to finance the Company's general
corporate purposes, fund working capital requirements, back the Company's commercial paper program, issue short-term commercial and standby letters of credit, and to renew, extend, and
refinance the Company's obligations to CoBank under the Company's existing seasonal loan pursuant to Note No. 29590 (the "Existing Seasonal Loan") and the existing letter of credit commitment
pursuant to Note No. 30812 (the Existing LC Commitment") (collectively, the "Notes"), both executed pursuant to the Seasonal Loan Agreement dated March 5, 1999 (the "Existing
Agreement"). The Company agrees that on the date when all conditions precedent to CoBank's obligation to extend credit hereunder have been satisfied: (a) the principal balance outstanding under
the Existing Seasonal Loan shall be transferred to and charged against the Commitment; (b) all accrued obligations of the Company under the Existing Seasonal Loan and the Existing LC Commitment
for the payment of interest or other charges shall be transferred to and become part of the Company's obligations under this Supplement as if fully set forth herein; and, (c) the Notes and the
Existing Agreement shall be deemed replaced and superseded. 

    SECTION 3.  Term.  The term of the Commitment shall be from the date hereof, up to but not including
March 30, 2001, or such later date as CoBank may, in its sole discretion, authorize in writing. 

    SECTION 4.  Interest.  The Company agrees to pay interest on the unpaid balance of the loans in
accordance with one or more of the following interest rate options, as selected by the Company: 

    (A) Base Rate Option.  At a rate per annum at all times equal to the Base Rate. For the purposes hereof,
Base Rate means that rate in effect from day to day defined as the "prime" rate as published from time to time in the Eastern Edition of The Wall Street
Journal as the average prime lending rate for seventy-five percent (75%) of the United States; thirty (30) largest commercial banks, or if  The Wall Street Journal shall
cease publication or cease publishing the "prime rate" on a regular basis, such other regularly published average prime
rate applicable to such commercial banks as is acceptable to the Lender in its reasonable discretion. Loans for which the Base Rate option is selected are referred to herein as "Base Rate Loans". 

Base
Rate Loans shall be: (a) in minimum amounts of $5,000,000 and incremental multiples of $1,000,000; and (b) made available on any Banking Day. Interest on Base Rate Loans shall be
calculated on the actual number of days each loan is outstanding on the basis of a year consisting of 360 days and shall be payable monthly in arrears on the twentieth Banking Day of the
following month. 

    (B) Quoted Rate Option.  At a fixed rate per annum at all times equal to the Quoted Rate. For the
purposes hereof, Quoted Rate means a fixed rate of interest to apply to a loan (referred to herein as a "Quoted Rate Loan") for a specified period of time not to exceed thirty (30) days quoted
by CoBank in its sole discretion. 

1

Quoted Rate Loans shall be (i) in minimum amounts of $1,000,000 and incremental multiples of $1,000,000; and (ii) made available on any Banking Day. The Quoted Rate may not necessarily
be the lowest rate at which CoBank funds at that time. 

Interest
on Quoted Rate Loans shall be calculated on the actual number of days each loan is outstanding on the basis of a year consisting of 360 days and shall be payable monthly in arrears on
the twentieth Banking Day of the following month. 

    (C) LIBOR Option.  At a fixed rate equal to LIBOR plus the Applicable Margin (as defined below). For the
purposes hereof, LIBOR means the rate for deposits in U.S. Dollars, with maturities comparable to the selected LIBOR Interest Period, that appears on the display designed as page "3750" of the
Telerate Service (or such other page as may replace the 3750 page of that service of if the Telerate Service shall cease displaying such rates, such other service or services as may be nominated by
the British Bankers' Association for the purpose of displaying London Interbank Offered Rates for U.S. Dollar deposits), determined as of 11:00 a.m. London time two Banking Days prior to the
commencement of such LIBOR Interest Period. "LIBOR Interest Period" means a period of one, two, three or six months. LIBOR pricing will be adjusted for Regulation D reserve requirements. The
Applicable Margin is 70 basis points. Loans for which the LIBOR option is selected are referred to herein as "LIBOR Loans". 

LIBOR
Loans shall be: (a) in a minimum amount of $5,000,000 and incremental multiples of $1,000,000; (b) made available on three Banking Days prior notice; and (c) be for periods
of one, two, three, or six months. Interest on LIBOR Loans shall be calculated on the actual number of days each loan is outstanding on the basis of a year consisting of 360 days and shall be
payable in arrears upon maturity of the applicable LIBOR Interest Period, but no less frequently than quarterly. The LIBOR option shall be subject to the following limitations: 

	(1)
	Notwithstanding
anything herein to the contrary, if, on or prior to the determination of the LIBOR rate for any LIBOR Interest Period, CoBank determines (which determination shall
be conclusive) that quotations of interest rates in accordance with the definition of LIBOR rate are not being provided in the relevant amounts or for the relevant maturities for purposes of
determining rates of interest for LIBOR rate advances as provided in this Supplement, then CoBank shall give the Company prompt notice thereof, and so long as such condition remains in effect, CoBank
shall be under no obligation to make LIBOR rate loans, convert Base Rate loans into LIBOR rate loans, or continue LIBOR rate loans, and the Company shall, on the last day(s) of the then current
applicable LIBOR Interest Period(s) for the outstanding LIBOR rate loans, either prepay such LIBOR rate loans or such LIBOR rate loans shall automatically be converted into a Base Rate loan in
accordance with this Section 4.

	(2)
	If
any law, treaty, rule, regulation or determination of a court or governmental authority or any change therein or in the interpretation or application thereof subsequent to the
date hereof (each, a "Change in Law") shall make it unlawful for CoBank to (a) advance any LIBOR rate loan or (b) maintain all or any portion of a LIBOR rate loan, then CoBank shall
promptly notify the Company thereof. In the former event, any obligation of CoBank to make available any future LIBOR rate loan shall immediately be canceled (and, in lieu thereof shall be made as a
Base Rate loan or Quoted Rate loan at the option of the Company), and in the latter event, any such unlawful LIBOR rate loan or portions thereof then outstanding shall be converted, at the option of
the Company, to either a Base Rate loan or a Quoted Rate loan; provided, however, that if any such Change in Law shall permit the LIBOR rate to remain in effect until the expiration of the LIBOR rate
period applicable to any such unlawful LIBOR rate loan, then such LIBOR rate loan shall continue in effect until the expiration of
such LIBOR rate period. Upon the occurrence of any of the foregoing events on account of any Change in Law, the Company shall pay to CoBank immediately upon demand such amounts as may be necessary to
compensate 

2

CoBank
for any fees, charges, or other costs incurred or payable by CoBank as a result thereof and which are attributable to any LIBOR rate loans made available to the Company hereunder. 

	(3)
	If
CoBank shall determine that, after the date hereof, the adoption of any applicable Law, rule or regulation regarding capital adequacy, or any change therein, or any change in the
interpretation or administration thereof by any governmental authority, central bank or comparable agency charged with the interpretation or administration thereof, or any request or directive
regarding capital adequacy (whether or not having the force of law) of any such governmental authority, central bank or comparable agency, has or would have the effect of reducing the rate of return
on capital of CoBank as a consequence of CoBank's obligations hereunder to a level below that which CoBank could have achieved but for such adoption, change, request or directive (taking into
consideration its policies with respect to capital adequacy existing on the date of this Supplement) by an amount deemed by CoBank to be material, then from time to time, within fifteen
(15) days after demand by CoBank, the Company shall pay to CoBank such additional amount or amounts as will compensate CoBank for such reduction. If CoBank is to require the Company to make
payments under this Section then CoBank must make a demand on the Company to make such payment within ninety (90) days of the later of (1) the date on which such capital costs are
actually incurred by CoBank, or (2) the date on which CoBank knows, or should have known, that such capital costs have been incurred by CoBank. 

The
Company shall select the applicable rate option at the time it requests a loan hereunder and may, subject to the limitations set forth above, elect to convert balances bearing interest at the
variable rate option to one of the fixed rate options. Upon the expiration of any fixed rate period, interest shall automatically accrue at the Base Rate unless the amount fixed is repaid or fixed for
an additional period in accordance with the terms hereof. Notwithstanding the foregoing, unless CoBank otherwise consents in its sole discretion in each instance, rates may not be fixed for periods
expiring after the maturity date of the loan. In the event CoBank so consents and the Commitment is not renewed, then each balance so fixed shall be due and payable on the last day of its fixed rate
period, and the promissory note set forth below shall be deemed amended accordingly. All elections provided for herein shall be made telephonically or in writing and must be received by 12:00 noon
Company's local time. As used in this Section 4, "Banking Day" means a day on which CoBank is open for business, dealings in U.S. dollar deposits are being carried out in the London interbank
market, and banks are open for business in New York City and London, England 

    SECTION 5.  Promissory Note.  The Company promises to repay the unpaid principal balance of the loans on
the first CoBank business day following the last day of the term of the Commitment. In addition to the above, the Company promises to pay interest on the unpaid principal balance of the loans at the
times and in accordance with the provisions set forth in Section 4 hereof. This note replaces and supersedes, but does not constitute payment of the indebtedness evidenced by, the promissory
note set forth in the Supplement being amended and restated hereby. 

    SECTION 6.  Borrowing Base Certificate, Etc.  The Company agrees to furnish a Borrowing Base Certificate
to CoBank at such times or intervals as CoBank may from time to time request. Until receipt of such a request, the Company agrees to furnish a Borrowing Base Certificate to CoBank within
30 days after each month end calculating the Borrowing Base as of the last day of the month for which the Certificate is being furnished. However, if no balance is outstanding hereunder on the
last day of such period, no Report need be furnished. Regardless of the frequency of the reporting, if at any time the amount outstanding under the Commitment exceeds the Borrowing Base, the Company
shall immediately notify CoBank and repay so much of the loans as is necessary to reduce the amount outstanding under the Commitment to the limits of the Borrowing Base. 

    SECTION 7.  Commitment Fee.  In consideration of the Commitment, the Company agrees to pay to CoBank a
commitment fee on the average daily unused portion of the Commitment at the rate of 12.5 

3

basis points per annum (calculated on a 360 day basis), payable quarterly in arrears by the 20th day following each calendar quarter. The unused amount of the 364-Day
facility will be the difference between the 364-Day Commitment and the sum of the outstanding 364-Day Facility Loans and the undrawn face amount of all outstanding Letters of
Credit. 

    SECTION 8.  Letters of Credit.  In addition to loans, and if agreeable to CoBank in its sole discretion
in each instance, the Company may utilize the Commitment to open irrevocable letters of credit for its account. Each letter of credit shall reduce the amount available under the Commitment by the
maximum amount capable of being drawn thereunder. The rights and obligations of the parties with respect to each letter of credit will be governed by the Reimbursement Agreement attached hereto as
Exhibit A (which rights and obligations shall be in addition to the rights and obligations of the parties hereunder and under the MLA). This Commitment shall expire on December 31, 2001.
The fee for issuing each letter of credit shall be 70 basis points of the face amount of each letter of credit, along with an issuance fee to CoBank, for its own account, equal to the greater of
(a) 1/8% of the face amount of the letter of credit, or (b) $2,000. The Company promises to repay the outstanding balance on the Commitment in full on demand, or if no
demand is made, then any time on or before the commitment expiration date of December 31, 2001.

    IN WITNESS WHEREOF, the parties have caused this Supplement to be executed by their duly authorized officers as of the date shown
above. 

	CoBANK, ACB	 	AMERICAN CRYSTAL SUGAR COMPANY
	 

By:	 
 	 

/s/ CASEY GARTEN   
	 
 	 

By:	 
 	 

/s/ SAMUEL WAI   

	 

Title:	 
 	 

Vice President
	 
 	 

Title:	 
 	 

Treasurer

4

 

[Form
of Borrowing Base] 

American Crystal Sugar Company
  Monthly Borrowing Base

For the month ended                   

	Trade Accounts Receivables	 	$	 	@ 80%	 	$	 	(a)
	 	 	
	 	 	 	
	 	 
	 

Trade Accounts Receivables are defined as those of the Borrower and all Guarantors which: (1) arise from the sale and delivery of inventory on ordinary trade terms; (2) are evidenced by an invoice; (3) are net of any credit, trade or
other allowance given to the account debtor; (4) are not owing by an account debtor who has become insolvent or is the subject of any bankruptcy, reorganization, liquidation or like proceeding; (5) are not subject to any offset or
deduction; (6) are not owing by an affiliate of Borrower; (7) are not owing by an obligor located outside of the U.S. unless the receivable is supported by a letter of credit issued by a bank acceptable to the Lender; and (8) are not
government receivables. The above provisions notwithstanding, Trade Receivables shall also exclude (i) any accounts that are past due more than 90 days, and (ii) any contra account regardless of the date;
	 

Inventory	 
 	 

$	 
 	 

(b)	 
 	 

 	 
 	 

 
	 	 	
	 	 	 	 	 	 
	 

Inventory as determined on the basis of Net Realizable Value, defined as the expected selling price of an inventory item less expected costs to complete and dispose, as determined in accordance with GAAP.
	 

Crop Payments due Non-members and members	 
 	 

$	 
 	 

(c)	 
 	 

 	 
 	 

 
	 	 	
	 	 	 	 	 	 
	 

Net Inventory Value (b-c)	 
 	 

$	 
 	 

@ 75%	 
 	 

$	 
 	 

(d)
	 	 	
	 	 	 	
	 	 
	 

Borrowing Base (a+d)	 
 	 

 	 
 	 

 	 
 	 

$	 
 	 

 
	 	 	 	 	 	 	
	 	 
	 

Commercial Paper	 
 	 

 	 
 	 

 	 
 	 

$	 
 	 

(e)
	 	 	 	 	 	 	
	 	 
	 

Seasonal Loan	 
 	 

 	 
 	 

 	 
 	 

 	 
 	 

(f)
	 	 	 	 	 	 	
	 	 
	 

CCC	 
 	 

 	 
 	 

 	 
 	 

 	 
 	 

(g)
	 	 	 	 	 	 	
	 	 
	 

Total Short-term Loans (e+f+g)	 
 	 

 	 
 	 

 	 
 	 

$	 
 	 

 
	 	 	 	 	 	 	
	 	 

1

Exhibit A  

 LETTER OF CREDIT REIMBURSEMENT AGREEMENT  

    In consideration of CoBank issuing one or more letters of credit (each a "Credit") for the Company's account under the Supplement to which this agreement is
attached (the "Supplement"), the Company agrees as follows: 

    1.  The
Company will pay to CoBank in United States currency and in immediately available funds the amount of each draft drawn or instrument paid under a Credit. In
addition, the Company agrees to pay to CoBank such fee for issuing each Credit as CoBank shall prescribe, as well as all customary charges associated with the issuance of a Credit. If a Credit is
payable in a foreign currency, the Company will pay to CoBank an amount in United States currency equivalent to CoBank's selling rate of exchange for that currency. In addition to the amounts set
forth above, the Company shall pay to CoBank such amounts as CoBank shall determine are necessary to compensate CoBank for any cost attributable to CoBank issuing or having outstanding any Credit
resulting from the application of any law or regulation concerning any reserve, assessment, capital adequacy or similar requirement relating to letters of credit, reimbursement agreements with respect
thereto, or to similar liabilities or assets of banks, whether existing at the time of the issuance of a Credit or adopted thereafter. Each payment hereunder shall be payable on demand at the place
and manner set forth in the Master Loan Agreement between the parties (the "MLA") and with interest from the date of demand to the date paid at CoBank's National Variable Rate. The Company hereby
authorizes CoBank to create a loan under the Supplement bearing interest at the variable rate set forth therein for any sums owing hereunder. 

    2.  Neither
CoBank nor any of its correspondents shall in any way be responsible for the performance by any beneficiary of its obligations to the Company nor for the
form, sufficiency, correctness, genuineness, authority of the person signing, falsification or legal effect of any documents called for under a Credit if such documents on their face appear to be in
order. In addition, CoBank and its correspondents may receive and accept or pay as complying with the terms of a Credit any drafts, documents, or certificates, otherwise in order, signed by any person
purporting to be an administrator, executor, trustee in bankruptcy, debtor in possession, assignee for the benefit of creditors, liquidator, receiver, or other legal representative of the party
authorized under a Credit to draw or issue such instruments or other documents. 

    3.  In
the event the Credit is a commercial Credit, then, in addition to the other provisions hereof, the Company: (i) agrees to obtain or cause to be in
existence insurance on any merchandise described in the Credit against fire and other usual risks and against any additional risks which CoBank may request; and (ii) authorizes and empowers
CoBank to collect the amount due under any such insurance and apply the same against any of the Company's obligations to CoBank arising under the Credit or otherwise. In addition, whether the Credit
is a commercial or a standby Credit, the Company represents and warrants that any required import, export or foreign exchange licenses or other governmental approvals relevant to the Credit and the
merchandise described therein have been obtained and that the transactions contemplated thereby are not prohibited under any law, rule, regulation, order or the like, including the Foreign Assets
Control Regulations of the U.S. Department of Treasury. 

    4.  All
directions and correspondence relating to a Credit are to be sent at the Company's risk and CoBank does not assume any responsibility for any inaccuracy,
interruption, error, or delay in transmission or delivery by post, telegraph, cable or other electronic means, or for any inaccuracy of translation. 

    5.  CoBank
shall not be responsible for any act, error, neglect, default, omission, insolvency or failure in business of any of its correspondents, and any action taken
or omitted by CoBank or its correspondents under or in connection with a Credit shall, if taken or omitted with honesty in fact, be binding on the Company and shall not put CoBank or its
correspondents under any resulting liability to the Company. In no event shall CoBank be liable for special, consequential or punitive damages. 

1

    6.  The Company will indemnify CoBank against and hold it harmless from all loss, damage, cost and expense (including attorneys' fees and expenses) arising out of
(i) its issuance of or any other action taken by CoBank in connection with a Credit, other than loss or damage resulting from its gross negligence or willful misconduct, and (ii) claims
or legal proceedings incident to the collection of amounts owed by the Company hereunder, or the enforcement of CoBank's rights or the rights of others under a Credit, including, without limitation,
legal proceedings relating to any court order, injunction or other process or decree restraining or seeking to restrain CoBank from paying any amount under a Credit. 

    7.  In
the event: (i) the Company fails to make any payment owing hereunder when the same shall become due and payable; (ii) any covenant or
representation or warranty set forth herein is breached; (iii) the "Commitment" (as defined in the Supplement) expires prior to the expiration date of any Credit; or (iv) an "Event of
Default" (as defined in the MLA) occurs under the MLA, then, in any such event, the amount of each Credit, together with any amounts payable by us in connection therewith, shall, at CoBank's option,
become immediately due and payable. To the extent that any amount paid by
the Company pursuant to this Section 7 shall not then be due under the terms of a Credit, such payment shall serve as security for the Company's obligation to indemnify CoBank for any amounts
subsequently disbursed by CoBank pursuant to a Credit. Furthermore, upon the institution of any legal proceeding described in Section 6(ii) hereof, the Company will, on demand, assign and deliver to
CoBank, as security for the Company's obligation to indemnify CoBank, cash collateral in an amount satisfactory to CoBank. 

    8.  CoBank
shall be fully protected in, and shall incur no liability to the Company for acting upon, any oral, telephonic, facsimile, cable or other electronic
instructions which CoBank in good faith believes to have been given by any authorized person. CoBank may, at its option, use any means of verifying any instructions received by it and may also, at its
option, refuse to act on any oral, telephonic, facsimile, cable or other electronic instructions or any part thereof, without incurring any responsibility for any loss, liability or expenses arising
out of such refusal. 

    9.  The
Uniform Customs and Practice as most recently published by the International Chamber of Commerce (hereafter called the "UCP") shall in all respects be deemed a
part hereof as fully as if incorporated herein, and shall apply to the Credits. To the extent the UCP is inconsistent with the governing law set forth in the MLA, the UCP shall control. 

2

Loan No. Z269T01 

  REVOLVING TERM LOAN SUPPLEMENT         

    THIS SUPPLEMENT to the Master Loan Agreement dated March 31, 2000 (the "MLA"), is entered into as of
March 31, 2000, between CoBANK, ACB ("CoBank") and AMERICAN CRYSTAL SUGAR COMPANY, Moorhead,
Minnesota (the "Company"). 

    SECTION 1.  The Revolving Term Loan Commitment.  On the terms and conditions set forth in the MLA and
this Supplement, CoBank agrees to make loans to the Company during the period set forth below
in an aggregate principal amount not to exceed $88,698,180.00 at any one time outstanding (the "Commitment"). Within the limits of the Commitment, the Company may borrow, repay and reborrow. 

    SECTION 2.  Purpose and Transfer.  The purpose of the Commitment is to finance the operating needs of the
Company and to renew, extend, and refinance the Company's obligations to CoBank under the Company's existing reinstatable term loan (the "Existing Reinstatable Term Loan") as currently evidenced by
Note No. 31143 (the "Note") entered into pursuant to the Term Loan Agreement dated March 5, 1999 (the "Existing Agreement"). The Company agrees that on the date when all conditions
precedent to CoBank's obligation to extend credit hereunder have been satisfied: (a) the principal balance outstanding under the Existing Reinstatable Term Loan shall be transferred to and
charged against the Commitment; (b) all accrued obligations of the Company under the Existing Reinstatable Term Loan for the payment of interest or other charges shall be transferred to and
become part of the Company's obligations under this Supplement as if fully set forth herein; and, (c) the Note and the Existing Agreement (to the extent applicable to the Note) shall be deemed
replaced and superseded, but the indebtedness evidenced by such Note shall not be deemed to have been paid off, by this Supplement and the MLA. 

    SECTION 3.  Term.  The term of the Commitment shall be from March 31, 2000, up to but not
including March 31, 2001, or such later date as CoBank may, in its sole discretion, authorize in writing. 

    SECTION 4.  Interest.  The Company agrees to pay interest on the unpaid balance of the loans in
accordance with one or more of the following interest rate options, as selected by the Company: 

    (A) Variable Rate Option.  At a rate per annum equal at all times to the rate of interest established by
CoBank from time to time as its National Variable Rate, which Rate is intended by CoBank to be a reference rate and not its lowest rate. The National Variable Rate will change on the date established
by CoBank as the effective date of any change therein and CoBank agrees to notify the Company promptly after any such change. 

    (B) Quoted Rate Option.  At a fixed rate per annum to be quoted by CoBank in its sole discretion in each
instance. Under this option, rates may be fixed on such balances and for such periods as may be agreeable to CoBank in its sole discretion in each instance. 

    (C) LIBOR Option.  At a fixed rate equal to "LIBOR" (as hereinafter defined) plus the Applicable LIBOR
Margin per annum (as described in terms of basis points ("bps") in the chart immediately set
forth below). Under this option: (a) rates may be fixed for "Interest Periods" (as hereinafter defined) of 1, 2, 3, and 6 months, as selected by the Company; (b) the minimum
amount that may be fixed at any one time shall be $2,000,000.00; and (c) rates may only be fixed on a "Banking Day" (as hereinafter defined) or, at the option of the Company, on 2 Banking Days'
prior notice. For purposes hereof: (i) "LIBOR" shall mean the rate indicated by Telerate (rounded upward to the nearest thousandth) as having been quoted by the British Bankers Association at
11:00 a.m. London time on the date the Company elects to fix a rate under this option for the offering of U.S. dollar deposits in the London interbank market for the Interest Period designated
by the Company; (ii) "Banking Day" shall mean a day on which CoBank is open for business, dealings in U.S. dollar deposits are being carried out in the London interbank market, and banks are
open for business in New York City and London, England; and (iii) "Interest Period" shall mean a period commencing on the day the Company elects to fix a rate under this option (or, at the
option of the 

1

Company, two Banking Days later) and ending on the numerically corresponding day in the next calendar month or the month that is 2, 3 or 6 months thereafter, as the case may be; provided,
however, that: (x) in the event such ending day is not a Banking Day, such period shall be extended to the next Banking Day unless such next Banking Day falls in the next calendar month, in
which case it shall end on the preceding Banking Day; and (y) if there is no numerically corresponding day in the month, then such period shall end on the last Banking Day in the relevant
month. 

LIBOR MARGINS  

	Rate Product
 
	 	Index
	 	Spread Over Index

in Basis Points

	One Month	 	LIBOR	 	90 bps
	Two Months	 	LIBOR	 	90 bps
	Three Months	 	LIBOR	 	90 bps
	Six Months	 	LIBOR	 	90 bps

    (D) Treasury Option.  At a fixed rate equal to Applicable "Treasury" Margin per annum (as described in
terms of basis points ("bps") in the chart immediately set forth below) above the "U.S. Treasury Rate" (as hereinafter defined). Under this option, balances of $2,000,000.00 or more may be fixed on or
before for periods ranging from one year to the final maturity date of the loan, as selected by the Company. However, rates may not be fixed in such a manner as to require the Company to have to repay
any fixed rate balance prior to the last day of its fixed rate period in order to pay any installment of principal. For purposes hereof, the "U.S. Treasury Rate" shall mean the yield to maturity on
U.S. Treasury instruments having the same maturity date as the last day of the fixed rate period selected by the Company, as calculated from the bid price indicated by Telerate (page 5) at the
time the rate is fixed. If, however, no instrument is indicated for the maturity selected, then the rate shall be interpolated based on the bid prices quoted for the next longest and shortest
maturities so indicated. In the event Telerate ceases to provide such quotations or materially changes the form or substance of page 5 (as determined by CoBank), then CoBank will notify the Company
and the parties hereto will agree upon a substitute basis for obtaining such quotations 

TREASURY MARGINS  

	One Year	 	U.S.$ Constant Maturity Treasury ("US$CMT")	 	125 bps
	Two Years	 	US$CMT	 	125 bps
	Three Years	 	US$CMT	 	125 bps
	Four Years	 	US$CMT	 	125 bps
	Five Years	 	US$CMT	 	125 bps
	Seven Years	 	US$CMT	 	140 bps
	Ten Years	 	US$CMT	 	140 bps
	Floor (Minimum) Margin (For One to Ten Year Fixed Rate Products Only)	 	CoBank's cost of funds (as reasonably determined by CoBank in its sole discretion)	 	105 bps

2

    The spread over all of the above indices, including the Floor Margin, may increase or decrease for future fixed amounts based on the Borrower's previous fiscal quarter's leverage
ratio, as follows: 

	Leverage Ratio

(as defined below)
	 	Increase / Decrease

to Spread
	 	Change to Libor

and Treasury Margins

(In Basis Points)

	A.	 	Equal to or greater than 1.35:1.00	 	Increase	 	20
	B.	 	Equal to or greater than 1.20:1.00, but less than 1.35:1.00	 	None	 	0
	C.	 	Less than 1.20:1.00, but greater than or equal to 1.00:1.00	 	Decrease	 	10
	D.	 	Less than 1.00:1.00	 	Decrease	 	20

    Leverage Ratio:  The Borrower will maintain a leverage ratio of not more than 1.50:1.0, and attain a leverage ratio of
not more than 1.40:1.0 on November 30, 2002. Leverage ratio is long term debt (excluding current maturities) calculated in accordance with GAAP plus or minus the difference between actual
working capital and minimum net working capital (as defined in the MLA No. Z269, Section 10), divided by total members investments plus the estimated unit retains. 

    The
spread shall be adjusted quarterly on the latter of either: (a) five business days after the Bank's receipt of the Borrower's certification of compliance with the leverage
ratio, or (b) 30 days after the end of each calendar quarter. 

    The
Company shall select the applicable rate option at the time it requests a loan hereunder and may, subject to the limitations set forth above, elect to convert balances bearing
interest at the variable rate option to one of the fixed rate options. Upon the expiration of any fixed rate period, interest shall automatically accrue at the variable rate option unless the amount
fixed is repaid or fixed for an additional period in accordance with the terms hereof. Notwithstanding the foregoing, unless CoBank otherwise consents in its sole discretion in each instance, rates
may not be fixed for periods expiring after the maturity date of the loans. In the event CoBank so consents and the Commitment is not
renewed, then each balance so fixed shall be due and payable on the last day of its fixed rate period, and the promissory note set forth below shall be deemed amended accordingly. All elections
provided for herein shall be made telephonically or in writing and must be received by 12:00 noon Company's local time. Interest shall be calculated on the actual number of days each loan is
outstanding on the basis of a year consisting of 360 days and shall be payable quarterly in arrears by the 20th day of the following month. 

    SECTION 5.  Promissory Note.  The Company promises to repay the loans that are outstanding in annual
principal payments of $9,396,579.17 each due on or before December 31st of each year through December 31, 2008, and a final principal payment due on or before
December 31, 2009. All outstanding balances shall be repaid by December 31, 2009. If any installment due date is not a day on which CoBank is open for business, then such payment shall
be made on the next day on which CoBank is open for business. In addition to the above, the Company promises to pay interest on the unpaid principal balance hereof at the times and in accordance with
the provisions set forth in Section 4 hereof. 

    The
Company shall be permitted to make special payments, in a minimum amount of $388,500.00, on the variable rate portion of this loan, when all short term financing, including the
Company's seasonal loans, Commodity Credit Corporation loans and other short term loans have been zeroed out. These special payments may be readvanced through the expiration date of the Commitment.
Reinstatement may be denied and canceled at any time at the option of CoBank. The reinstatable commitments arising from such special payments shall be subject to the Commitment Fee as described in
Section 8 below. 

    SECTION 6.  Prepayment.  The loans may be prepaid in whole or in part on one CoBank business day's prior
written notice. During the term of the Commitment, prepayments shall be applied to such balances, fixed or variable, as the Company shall specify. After the expiration of the term of the 

3

Commitment, prepayments shall, unless CoBank otherwise agrees, be applied to principal installments in the inverse order of their maturity and to such balances, fixed or variable, as CoBank shall
specify. 

    SECTION 7.  Commitment Fee.  In consideration of the Commitment, the Company agrees to pay to CoBank a
commitment fee on the average daily unused portion of the Commitment at the rate of 12.5 basis points per annum (calculated on a 360 day basis), payable quarterly in arrears by the 20th day
following each calendar quarter. Such fee shall be payable for each calendar quarter (or portion thereof) occurring during the original or any extended term of the Commitment. 

    SECTION 8.  Commitments Arising From Special Payments.  Commitments arising as a result of special
payments described in Section 5 above shall be subject to a commitment fee of 25 basis points (0.25%) on an annualized basis, on the average daily commitment. Any such fees incurred shall be
payable on the last day of the calendar quarter, in arrears, computed on the basis of a year of 360 days for the actual number of days elapsed in which such reinstatable commitments were
outstanding. 

    SECTION 9.  Security.  In addition to any other security that may otherwise be required or provided, the
Company's obligations under this Supplement are secured by that Restated Mortgage and Security Agreement dated September 15, 1998, from American Crystal Sugar Company to St. Paul Bank for
Cooperatives (now known as CoBank as a result of merger), as Collateral Agent. 

    IN WITNESS WHEREOF, the parties have caused this Supplement to be executed by their duly authorized officers as of the date shown
above. 

	CoBANK, ACB	 	AMERICAN CRYSTAL SUGAR COMPANY
	 

By:	 
 	 

/s/ CASEY GARTEN   
	 
 	 

By:	 
 	 

/s/ SAMUEL WAI   

	 

Title:	 
 	 

Vice President
	 
 	 

Title:	 
 	 

Treasurer

4

 

Loan
No. Z269T01NP 

  REVOLVING TERM LOAN SUPPLEMENT         

    THIS SUPPLEMENT to the Master Loan Agreement dated March 31, 2000 (the "MLA"), is entered into as of
March 31, 2000, between CoBANK, ACB ("CoBank") and AMERICAN CRYSTAL SUGAR COMPANY, Moorhead,
Minnesota (the "Company"). 

    SECTION 1.  The Revolving Term Loan Commitment.  On the terms and conditions set forth in the MLA and
this Supplement, CoBank agrees to make loans to the Company during the period set forth below in an aggregate principal amount not to exceed $71,771,820.00 at any one time outstanding (the
"Commitment"). Within the limits of the Commitment, the Company may borrow, repay and reborrow. 

    SECTION 2.  Purpose and Transfer.  The purpose of the Commitment is to finance the operating needs of the
Company and to renew, extend, and refinance the Company's obligations to CoBank under the Company's existing reinstatable term loan (the "Existing Reinstatable Term Loan") as currently evidenced by
Note No. 31143NP (the "Note") entered into pursuant to the Term Loan Agreement dated March 5, 1999 (the "Existing Agreement"). The Company agrees that on the date when all conditions
precedent to CoBank's obligation to extend credit hereunder have been satisfied: (a) the principal balance outstanding under the Existing Reinstatable Term Loan shall be transferred to and
charged against the Commitment; (b) all accrued obligations of the Company under the Existing Reinstatable Term Loan for the payment of interest or other charges shall be transferred to and
become part of the Company's obligations under this Supplement as if fully set forth herein; and, (c) the Note and the Existing Agreement (to the extent applicable to the Note) shall be deemed
replaced and superseded, but the indebtedness evidenced by such Notes shall not be deemed to have been paid off, by this Supplement and the MLA. 

    SECTION 3.  Term.  The term of the Commitment shall be from March 31, 2000, up to but not
including March 31, 2001, or such later date as CoBank may, in its sole discretion, authorize in writing. 

    SECTION 4.  Interest.  The Company agrees to pay interest on the unpaid balance of the loans in
accordance with one or more of the following interest rate options, as selected by the Company: 

    (A) Variable Rate Option.  At a rate per annum equal at all times to the rate of interest established by
CoBank from time to time as its National Variable Rate, which Rate is intended by CoBank to be a reference rate and not its lowest rate. The National Variable Rate will change on the date established
by CoBank as the effective date of any change therein and CoBank agrees to notify the Company promptly after any such change. 

    (B) Quoted Rate Option.  At a fixed rate per annum to be quoted by CoBank in its sole discretion in each
instance. Under this option, rates may be fixed on such balances and for such periods as may be agreeable to CoBank in its sole discretion in each instance. 

    (C) LIBOR Option.  At a fixed rate equal to "LIBOR" (as hereinafter defined) plus the Applicable LIBOR
Margin per annum (as described in terms of basis points ("bps") in the chart immediately set forth below). Under this option: (a) rates may be fixed for "Interest Periods" (as hereinafter
defined) of 1, 2, 3, and 6 months, as selected by the Company; (b) the minimum amount that may be fixed at any one time shall be $2,000,000.00; and (c) rates may only be fixed on
a "Banking Day" (as hereinafter defined) or, at the option of the Company, on 2 Banking Days' prior notice. For purposes hereof: (i) "LIBOR" shall mean the rate indicated by Telerate (rounded
upward to the nearest thousandth) as having been quoted by the British Bankers Association at 11:00 a.m. London time on the date the Company elects to fix a rate under this option for the
offering of U.S. dollar deposits in the London interbank market for the Interest Period designated by the Company; (ii) "Banking Day" shall mean a day on which CoBank is open for business,
dealings in U.S. dollar deposits are being carried out in the London interbank market, and banks are open for business in New York City and London, England; and (iii) "Interest Period" shall
mean a period commencing on the day the Company elects to fix a rate under this option (or, at the option of the 

1

Company, two Banking Days later) and ending on the numerically corresponding day in the next calendar month or the month that is 2, 3 or 6 months thereafter, as the case may be; provided,
however, that: (x) in the event such ending day is not a Banking Day, such period shall be extended to the next Banking Day unless such next Banking Day falls in the next calendar month, in
which case it shall end on the preceding Banking Day; and (y) if there is no numerically corresponding day in the month, then such period shall end on the last Banking Day in the relevant
month. 

  LIBOR MARGINS         

	Rate Product
 
	 	Index
	 	Spread Over Index in Basis Points

	One Month	 	LIBOR	 	90 bps
	Two Months	 	LIBOR	 	90 bps
	Three Months	 	LIBOR	 	90 bps
	Six Months	 	LIBOR	 	90 bps

    (D) Treasury Option.  At a fixed rate equal to the Applicable Treasury Margin per annum (as described in
terms of basis points ("bps") in the chart immediately set forth below) above the "U.S. Treasury Rate" (as hereinafter defined). Under this option, balances of $2,000,000.00 or more may be fixed on or
before for periods ranging from one year to the final maturity date of the loan, as selected by the Company. However, rates may not be fixed in such a manner as to require the Company to have to repay
any fixed rate balance prior to the last day of its fixed rate period in order to pay any installment of principal. For purposes hereof, the "U.S. Treasury Rate" shall mean the yield to maturity on
U.S. Treasury instruments having the same maturity date as the last day of the fixed rate period selected by the Company, as calculated from the bid price indicated by Telerate (page 5) at the
time the rate is fixed. If, however, no instrument is indicated for the maturity selected, then the rate shall be interpolated based on the bid prices quoted for the next longest and shortest
maturities so indicated. In the event Telerate ceases to provide such quotations or materially changes the form or substance of page 5 (as determined by CoBank), then CoBank will notify the Company
and the parties hereto will agree upon a substitute basis for obtaining such quotations 

  TREASURY MARGINS         

	One Year	 	U.S.$ Constant Maturity Treasury ("US$CMT")	 	125 bps
	Two Years	 	US$CMT	 	125 bps
	Three Years	 	US$CMT	 	125 bps
	Four Years	 	US$CMT	 	125 bps
	Five Years	 	US$CMT	 	125 bps
	Seven Years	 	US$CMT	 	140 bps
	Ten Years	 	US$CMT	 	140 bps
	Floor (Minimum) Margin (For One to Ten Year Fixed Rate Products Only)	 	CoBank's cost of funds (as reasonably determined by CoBank in its sole discretion)	 	105 bps

2

    The spread over all of the above indices, including the Floor Margin, may increase or decrease for future fixed amounts based on the Borrower's previous fiscal quarter's leverage
ratio, as follows: 

	Leverage Ratio

(as defined below)
	 	Increase / Decrease

to Spread
	 	Change to Libor

and Treasury Margins

(in Basis Points)

	A.	 	Equal to or greater than 1.35:1.00	 	Increase	 	20
	B.	 	Equal to or greater than 1.20:1.00, but less than 1.35:1.00	 	None	 	0
	C.	 	Less than 1.20:1.00, but greater than or equal to 1.00:1.00	 	Decrease	 	10
	D.	 	Less than 1.00:1.00	 	Decrease	 	20

    Leverage Ratio:  The Borrower will maintain a leverage ratio of not more than 1.50:1.0, and attain a leverage ratio of
not more than 1.40:1.0 on November 30, 2002. Leverage ratio is long term debt (excluding current maturities) calculated in accordance with GAAP plus or minus the difference between actual
working capital and minimum net working capital (as defined in the MLA No. Z269, Section 10), divided by total members investments plus the estimated unit retains. 

    The
spread shall be adjusted quarterly on the latter of either: (a) five business days after the Bank's receipt of the Borrower's certification of compliance with the leverage
ratio, or (b) 30 days after the end of each calendar quarter. 

    The
Company shall select the applicable rate option at the time it requests a loan hereunder and may, subject to the limitations set forth above, elect to convert balances bearing
interest at the variable rate option to one of the fixed rate options. Upon the expiration of any fixed rate period, interest shall automatically accrue at the variable rate option unless the amount
fixed is repaid or fixed for an additional period in accordance with the terms hereof. Notwithstanding the foregoing, unless CoBank otherwise consents in its sole discretion in each instance, rates
may not be fixed for periods expiring
after the maturity date of the loans. In the event CoBank so consents and the Commitment is not renewed, then each balance so fixed shall be due and payable on the last day of its fixed rate period,
and the promissory note set forth below shall be deemed amended accordingly. All elections provided for herein shall be made telephonically or in writing and must be received by 12:00 noon Company's
local time. Interest shall be calculated on the actual number of days each loan is outstanding on the basis of a year consisting of 360 days and shall be payable quarterly in arrears by the
20th day of the following month. 

    SECTION 5.  Promissory Note.  The Company promises to repay the loans that are outstanding in annual
principal payments of $7,603,420.83 each due on or before December 31st of each year through December 31, 2008, and a final principal payment due on or before
December 31, 2009. All outstanding balances shall be repaid by December 31, 2009. If any installment due date is not a day on which CoBank is open for business, then such payment shall
be made on the next day on which CoBank is open for business. In addition to the above, the Company promises to pay interest on the unpaid principal balance hereof at the times and in accordance with
the provisions set forth in Section 4 hereof. 

    The
Company shall be permitted to make special payments, in a minimum amount of $111,500.00, on the variable rate portion of this loan, when all short term financing, including the
Company's seasonal loans, Commodity Credit Corporation loans and other short term loans have been zeroed out. These special payments may be readvanced through the expiration date of the Commitment.
Reinstatement may be denied and canceled at any time at the option of CoBank. The reinstatable commitments arising from such special payments shall be subject to the Commitment Fee as described in
Section 8 below. 

    SECTION 6.  Prepayment.  The loans may be prepaid in whole or in part on one CoBank business day's prior
written notice. During the term of the Commitment, prepayments shall be applied to such balances, fixed or variable, as the Company shall specify. After the expiration of the term of the 

3

Commitment, prepayments shall, unless CoBank otherwise agrees, be applied to principal installments in the inverse order of their maturity and to such balances, fixed or variable, as CoBank shall
specify. 

    SECTION 7.  Commitment Fee.  In consideration of the Commitment, the Company agrees to pay to CoBank a
commitment fee on the average daily unused portion of the Commitment at the rate of 12.5 basis points per annum (calculated on a 360 day basis), payable quarterly in arrears by the 20th day
following each calendar quarter. Such fee shall be payable for each calendar quarter (or portion thereof) occurring during the original or any extended term of the Commitment. 

    SECTION 8.  Commitments Arising From Special Payments.  Commitments arising as a result of special
payments described in Section 5 above shall be subject to a commitment fee of 25 basis points (0.25%) on an annualized basis, on the average daily commitment. Any such fees incurred shall be
payable on the last day of the calendar quarter, in arrears, computed on the basis of a year of 360 days for the actual number of days elapsed in which such reinstatable commitments were
outstanding. 

    SECTION 9.  Security.  In addition to any other security that may otherwise be required or provided, the
Company's obligations under this Supplement are secured by that Restated Mortgage and Security Agreement dated September 15, 1998, from American Crystal Sugar Company to St. Paul Bank for
Cooperatives (now known as CoBank as a result of merger), as Collateral Agent. 

    IN WITNESS WHEREOF, the parties have caused this Supplement to be executed by their duly authorized officers as of the date shown
above. 

	CoBANK, ACB	 	AMERICAN CRYSTAL SUGAR COMPANY
	 

By:	 
 	 

/s/ CASEY GARTEN   
	 
 	 

By:	 
 	 

/s/ SAMUEL WAI   

	 

Title:	 
 	 

Vice President
	 
 	 

Title:	 
 	 

Treasurer

4

 

Loan
No. Z269T02NP 

  REVOLVING TERM LOAN SUPPLEMENT         

    THIS SUPPLEMENT to the Master Loan Agreement dated March 31, 2000 (the "MLA"), is entered into as of
March 31, 2000, between CoBANK, ACB ("CoBank") and AMERICAN CRYSTAL SUGAR COMPANY, Moorhead,
Minnesota (the "Company"). 

    SECTION 1.  The Revolving Term Loan Commitment.  On the terms and conditions set forth in the MLA and
this Supplement, CoBank agrees to make loans to the Company during the period set forth below in an aggregate principal amount not to exceed $20,000,000.00 at any one time outstanding (the
"Commitment"). Within the limits of the Commitment, the Company may borrow, repay and reborrow, provided, however, no advances shall be made on this Term Loan, until Term Loan No. Z269T01, has been
fully advanced. 

    SECTION 2.  Purpose and Transfer.  The purpose of the Commitment is to finance the operating needs of the
Company and to renew, extend, and refinance the Company's obligations to CoBank under the Company's existing reinstatable term loan (the "Existing Reinstatable Term Loan") as currently evidenced by
Note No. 31144NP (the "Note") entered into pursuant to the Term Loan Agreement dated March 5, 1999 (the "Existing Agreement"). The Company agrees that on the date when all conditions
precedent to CoBank's obligation to extend credit hereunder have been satisfied: (a) the principal balance outstanding under the Existing Reinstatable Term Loan shall be transferred to and
charged against the Commitment; (b) all accrued obligations of the Company under the Existing Reinstatable Term Loan for the payment of interest or other charges shall be transferred to and
become part of the Company's obligations under this Supplement as if fully set forth herein; and, (c) the Note and the Existing Agreement (to the extent applicable to the Note) shall be deemed
replaced and superseded, but the indebtedness evidenced by such Note shall not be deemed to have been paid off, by this Supplement and the MLA. 

    SECTION 3.  Term.  The term of the Commitment shall be from March 31, 2000, up to but not
including March 31, 2001, or such later date as CoBank may, in its sole discretion, authorize in writing. 

    SECTION 4.  Interest.  The Company agrees to pay interest on the unpaid balance of the loans in
accordance with one or more of the following interest rate options, as selected by the Company: 

    (A) Variable Rate Option.  At a rate per annum equal at all times to the rate of interest established by
CoBank from time to time as its National Variable Rate, which Rate is intended by CoBank to be a reference rate and not its lowest rate. The National Variable Rate will change on the date established
by CoBank as the effective date of any change therein and CoBank agrees to notify the Company promptly after any such change. 

    (B) Quoted Rate Option.  At a fixed rate per annum to be quoted by CoBank in its sole discretion in each
instance. Under this option, rates may be fixed on such balances and for such periods as may be agreeable to CoBank in its sole discretion in each instance. 

    (C) LIBOR Option.  At a fixed rate equal to "LIBOR" (as hereinafter defined) plus the Applicable LIBOR
Margin per annum (as described in terms of basis points ("bps") in the chart immediately set forth below). Under this option: (a) rates may be fixed for "Interest Periods" (as hereinafter
defined) of 1, 2, 3, and 6 months, as selected by the Company; (b) the minimum amount that may be fixed at any one time shall be $2,000,000.00; and (c) rates may only be fixed on
a "Banking Day" (as hereinafter defined) or, at the option of the Company, on 2 Banking Days' prior notice. For purposes hereof: (i) "LIBOR" shall mean the rate indicated by Telerate (rounded
upward to the nearest thousandth) as having been quoted by the British Bankers Association at 11:00 a.m. London time on the date the Company elects to fix a rate under this option for the
offering of U.S. dollar deposits in the London interbank market for the Interest Period designated by the Company; (ii) "Banking Day" shall mean a day on which CoBank is open for business,
dealings in U.S. dollar deposits are being carried out in the London interbank market, and banks are open 

1

for business in New York City and London, England; and (iii) "Interest Period" shall mean a period commencing on the day the Company elects to fix a rate under this option (or, at the option of
the Company, two Banking Days later) and ending on the numerically corresponding day in the next calendar month or the month that is 2, 3 or 6 months thereafter, as the case may be; provided,
however, that: (x) in the event such ending day is not a Banking Day, such period shall be extended to the next Banking Day unless such next Banking Day falls in the next calendar month, in
which case it shall end on the preceding Banking Day; and (y) if there is no numerically corresponding day in the month, then such period shall end on the last Banking Day in the relevant
month. 

  LIBOR MARGINS         

	Rate Product
 
	 	Index
	 	Spread over Index in Basis Points

	One Month	 	LIBOR	 	90 bps
	Two Months	 	LIBOR	 	90 bps
	Three Months	 	LIBOR	 	90 bps
	Six Months	 	LIBOR	 	90 bps

    (D) Treasury Option.  At a fixed rate equal to Applicable "Treasury" Margin per annum (as described in
terms of basis points ("bps") in the chart immediately set forth below) above the "U.S. Treasury Rate" (as hereinafter defined). Under this option, balances of $2,000,000.00 or more may be fixed on or
before for periods ranging from one year to the final maturity date of the loan, as selected by the Company. However, rates may not be fixed in such a manner as to require the Company to have to repay
any fixed rate balance prior to the last day of its fixed rate period in order to pay any installment of principal. For purposes hereof, the "U.S. Treasury Rate" shall mean the yield to maturity on
U.S. Treasury instruments having the same maturity date as the last day of the fixed rate period selected by the Company, as calculated from the bid price indicated by Telerate (page 5) at the
time the rate is fixed. If, however, no instrument is indicated for the maturity selected, then the rate shall be interpolated based on the bid prices quoted for the next longest and shortest
maturities so indicated. In the event Telerate ceases to provide such quotations or materially changes the form or substance of page 5 (as determined by CoBank), then CoBank will notify the Company
and the parties hereto will agree upon a substitute basis for obtaining such quotations 

  TREASURY MARGINS         

	One Year	 	U.S.$ Constant Maturity Treasury ("US$CMT")	 	125 bps
	Two Years	 	US$CMT	 	125 bps
	Three Years	 	US$CMT	 	125 bps
	Four Years	 	US$CMT	 	125 bps
	Five Years	 	US$CMT	 	125 bps
	Seven Years	 	US$CMT	 	140 bps
	Ten Years	 	US$CMT	 	140 bps
	Floor (Minimum) Margin (For One to Ten Year Fixed Rate Products Only)	 	CoBank's cost of funds (as reasonably determined by CoBank in its sole discretion)	 	105 bps

2

    The spread over all of the above indices, including the Floor Margin, may increase or decrease for future fixed amounts based on the Borrower's previous fiscal quarter's leverage
ratio, as follows: 

	Leverage Ratio

(as defined below)
	 	Increase/Decrease

to Spread
	 	Change to Libor

and Treasury Margins

(in Basis Points)

	A.	 	Equal to or greater than 1.35:1.00	 	Increase	 	20
	B.	 	Equal to or greater than 1.20:1.00, but less than 1.35:1.00	 	None	 	0
	C.	 	Less than 1.20:1.00, but greater than or equal to 1.00:1.00	 	Decrease	 	10
	D.	 	Less than 1.00:1.00	 	Decrease	 	20

    Leverage Ratio:  The Borrower will maintain a leverage ratio of not more than 1.50:1.0, and attain a leverage ratio of
not more than 1.40:1.0 on November 30, 2002. Leverage ratio is long term debt (excluding current maturities) calculated in accordance with GAAP plus or minus the difference between actual
working capital and minimum net working capital (as defined in the MLA No. Z269, Section 10), divided by total members investments plus the estimated unit retains. 

    The
spread shall be adjusted quarterly on the latter of either: (a) five business days after the Bank's receipt of the Borrower's certification of compliance with the leverage
ratio, or (b) 30 days after the end of each calendar quarter. 

    The
Company shall select the applicable rate option at the time it requests a loan hereunder and may, subject to the limitations set forth above, elect to convert balances bearing
interest at the variable rate option to one of the fixed rate options. Upon the expiration of any fixed rate period, interest shall automatically accrue at the variable rate option unless the amount
fixed is repaid or fixed for an additional period in accordance with the terms hereof. Notwithstanding the foregoing, unless CoBank otherwise consents in its sole discretion in each instance, rates
may not be fixed for periods expiring
after the maturity date of the loans. In the event CoBank so consents and the Commitment is not renewed, then each balance so fixed shall be due and payable on the last day of its fixed rate period,
and the promissory note set forth below shall be deemed amended accordingly. All elections provided for herein shall be made telephonically or in writing and must be received by 12:00 noon Company's
local time. Interest shall be calculated on the actual number of days each loan is outstanding on the basis of a year consisting of 360 days and shall be payable quarterly in arrears by the
20th day of the following month. 

    SECTION 5.  Promissory Note.  The Company promises to repay the loans that are outstanding in annual
principal payments of $2,000,000.00 each due on or before December 31st of each year commencing in 2001. All outstanding balances shall be repaid by December 31, 2009. If
any installment due date is not a day on which CoBank is open for business, then such payment shall be made on the next day on which CoBank is open for business. In addition to the above, the Company
promises to pay interest on the unpaid principal balance hereof at the times and in accordance with the provisions set forth in Section 4 hereof. 

    SECTION 6.  Prepayment.  The loans may be prepaid in whole or in part on one CoBank business day's prior
written notice. During the term of the Commitment, prepayments shall be applied to such balances, fixed or variable, as the Company shall specify. After the expiration of the term of the Commitment,
prepayments shall, unless CoBank otherwise agrees, be applied to principal installments in the inverse order of their maturity and to such balances, fixed or variable, as CoBank shall specify. 

    SECTION 7.  Commitment Fee.  In consideration of the Commitment, the Company agrees to pay to CoBank a
commitment fee on the average daily unused portion of the Commitment at the rate of 12.5 basis points per annum (calculated on a 360 day basis), payable quarterly in arrears by the 20th day 

3

following each calendar quarter. Such fee shall be payable for each calendar quarter (or portion thereof) occurring during the original or any extended term of the Commitment. 

    SECTION 8.  Letters of Credit.  In addition to loans, and if agreeable to CoBank in its sole discretion
in each instance, the Company may utilize the Commitment to open irrevocable letters of credit for its account. Each letter of credit shall reduce the amount available under the Commitment by the
maximum amount capable of being drawn thereunder. The rights and obligations of the parties with respect to each letter of credit will be governed by the Reimbursement Agreement attached hereto as
Exhibit A (which rights and obligations shall be in addition to the rights and obligations of the parties hereunder
and under the MLA). The fee for issuing each letter of credit shall be determined at the time of application. 

    SECTION 9.  Security.  In addition to any other security that may otherwise be required or provided, the
Company's obligations under this Supplement are secured by that Restated Mortgage and Security Agreement dated September 15, 1998, from American Crystal Sugar Company to St. Paul Bank for
Cooperatives (now known as CoBank as a result of merger), as Collateral Agent. 

    IN WITNESS WHEREOF, the parties have caused this Supplement to be executed by their duly authorized officers as of the date shown
above. 

	CoBANK, ACB	 	AMERICAN CRYSTAL SUGAR COMPANY
	 

By:	 
 	 

/s/ CASEY GARTEN   
	 
 	 

By:	 
 	 

/s/ SAMUEL WAI   

	 

Title:	 
 	 

Vice President
	 
 	 

Title:	 
 	 

Treasurer

4

 

Loan
No. Z269T03A NP 

  SINGLE ADVANCE TERM LOAN SUPPLEMENT         

    THIS SUPPLEMENT to the Master Loan Agreement dated as of March 31, 2000 (the "MLA"), is entered into as
of April 21, 2000, between CoBANK, ACB ("CoBank") and AMERICAN CRYSTAL SUGAR COMPANY, Moorhead,
Minnesota (the "Company"), and amends and restates the Supplement dated March 31, 2000 and numbered Z269T03NP. 

    SECTION 1.  The Term Loan.  This Supplement is to evidence a term loan to the Company in the original
principal commitment amount of $12,000,000.00 (the "Loan"). The Loan is currently evidenced by Note No. 30800NP (the "Note") and is subject to the terms of that certain Note Agreement dated
December 5, 1994 by and among the Company, CoBank's predecessor (the St. Paul Bank for Cooperatives), and Bank of North Dakota (the "Note Agreement"). The outstanding principal balance of the
Loan as of the date hereof is $7,200,000.00. 

    SECTION 2.  Purpose and Transfer.  The purpose of this Supplement is to replace the Note and transfer the
indebtedness evidenced thereby to this Supplement. As of the date of this Supplement, the Note shall be deemed replaced and superseded, but the indebtedness evidenced by such Note shall not be deemed
to have been paid off, by this Supplement and the MLA. The Note Agreement shall remain in full force and effect except that any reference to the "Loan" shall be deemed to mean the indebtedness
evidenced by this Supplement, and any reference to "Loan Agreement" shall be deemed a reference to the MLA. To the extent that the Note Agreement may be inconsistent with the terms of this Supplement
or the MLA, the terms of the Note Agreement shall control. All security given to secure the Note shall secure this Supplement. 

    SECTION 3.  Availability.  The date for permitting advances under the Note has expired. There is no
further availability. 

    SECTION 4.  Interest.  The Company agrees to pay interest on the unpaid balance of the Loan at such rate
or rates as determined in accordance with the terms of the Note Agreement. As of the date hereof
the interest rate is fixed at 6.34% per annum and shall remain fixed at such rate for the period as provided for in the Note Agreement. All other matters regarding the calculation and payment of
interest shall be in accordance with the terms of the Note Agreement (including, without limitation, the terms applicable to prepayment of fixed rate loans prior to pricing maturity dates). 

    SECTION 5.  Promissory Note.  The Company promises to repay the Loan in accordance with the repayment
terms of the Note Agreement. If any installment due date is not a day on which CoBank is open for business, then such payment shall be made on the next day on which CoBank is open for business. In
addition to the above, the Company promises to pay interest on the unpaid principal balance hereof at the times and in accordance with the terms of the Note Agreement. This note replaces and
supersedes, but does not constitute payment of the indebtedness evidenced by, the promissory note set forth in the Supplement being amended and restated hereby. 

    SECTION 6.  Prepayment.  Subject to the terms of the Note Agreement, the Loan may be prepaid in whole or
in part on one CoBank business day's prior written notice. 

    SECTION 7.  Security.  In addition to any other security that may otherwise be required or provided, the
Company's obligations under this Supplement are secured by that Restated Mortgage and Security Agreement dated September 15, 1998, from American Crystal Sugar Company to St. Paul Bank for
Cooperatives (now known as CoBank as a result of merger), as Collateral Agent. 

1

    IN WITNESS WHEREOF, the parties have caused this Supplement to be executed by their duly authorized officers as of the date shown
above. 

	CoBANK, ACB	 	AMERICAN CRYSTAL SUGAR COMPANY
	 

By:	 
 	 

/s/ CASEY GARTEN   
	 
 	 

By:	 
 	 

/s/ SAMUEL WAI   

	 

Title:	 
 	 

Vice President
	 
 	 

Title:	 
 	 

Treasurer

2

Loan No. Z269T04 

  LETTER OF CREDIT COMMITMENT SUPPLEMENT.         

    THIS SUPPLEMENT to the Master Loan Agreement dated March 31, 2000 (the "MLA"), is entered into as of
March 31, 2000, between CoBANK, ACB ("CoBank") and AMERICAN CRYSTAL SUGAR
COMPANY, Moorhead, Minnesota (the "Company"). 

    SECTION 1.  The Letter of Credit.  On the terms and conditions set forth in the MLA, CoBank agrees to
establish a loan commitment to the Company in an amount not to exceed $31,000,000.00 (the "Commitment"). The Commitment shall expire at 12:00 noon (Company's local time) on April 30, 2013 or on
such later date as CoBank may, in its sole discretion, authorize in writing. 

    SECTION 2.  Purpose.  The purpose of the Commitment is to reimburse CoBank in the event of draws on
letters of credit issued by CoBank (or its predecessor) for the benefit of the Company, and to renew, extend and refinance the Company's obligations to CoBank under the Company's existing Letter
of Credit Commitment ("Existing Letter of Credit Commitment") as currently evidenced by Note No. 30343 (the "Note") and the Loan Agreement dated March 5, 1999. (the "Existing
Agreement"). The Company agrees that on the date when all conditions precedent to CoBank's obligation to extend credit hereunder have been satisfied: (a) the principal balance outstanding (or
any obligations outstanding as a result of any letters of credit currently in effect) under the Existing Letter of Credit Commitment shall be transferred to and charged against this Commitment;
(b) all accrued obligations of the Company under the Existing Letter of Credit Commitment for the payment of interest or other charges shall be transferred to and become part of the Company's
obligations under this Supplement as if fully set forth herein; and, (c) the Note and the Existing Agreement (to the extent applicable to the Note) shall be deemed replaced and superseded, but
the indebtedness evidenced by such Note shall not be deemed to have been paid off, by this Supplement and the MLA. 

    SECTION 3.  Promissory Note.  The Company promises to repay all outstanding balances for advances made in
support of outstanding letters of credit, upon demand 

    SECTION 4.  Interest.  The Company agrees to pay interest on the unpaid principal balance of each loan,
from the date of draw to actual repayment on a daily basis for the actual number of days any portion of the principal is outstanding. The unpaid principal balance shall bear interest at a rate per
annum equal at all times to the rate of interest established by CoBank from time to time as its National Variable Rate, which Rate is intended by CoBank to be a reference rate and not its lowest rate.
The National Variable Rate will change on the date established by CoBank as the effective date of any change therein and CoBank agrees to notify the Company promptly after any such change. Interest
shall be calculated on the actual number of days each loan is outstanding on the basis of a year consisting of 360 days and shall be payable monthly in arrears by the 20th day of the following
month. 

    SECTION 5.  Issuance of Letters of Credit.  Each letter of credit issued shall reduce the amount
available under the Commitment by the maximum amount capable of being drawn thereunder. The rights and obligations of the parties with respect to each letter of credit will be governed by the
Reimbursement Agreement attached hereto as Exhibit A (which rights and obligations shall be in addition to the rights and obligations of the parties hereunder and under the MLA). The fee for
issuing each letter of credit shall be determined CoBank at the time of issuance. The Company promises to repay the outstanding balance on the Commitment in full on demand, or if no demand is made,
then any time on or before the Commitment expiration date. 

    SECTION 6.  Security.  In addition to any other security that may otherwise be required or provided, the
Company's obligations under this Supplement are secured by that Restated Mortgage and Security Agreement dated September 15, 1998, from American Crystal Sugar Company to St. Paul Bank for
Cooperatives (now known as CoBank as a result of merger), as Collateral Agent. 

1

    IN WITNESS WHEREOF, the parties have caused this Supplement to be executed by their duly authorized officers as of the date shown
above. 

	CoBANK, ACB	 	AMERICAN CRYSTAL SUGAR COMPANY
	 

By:	 
 	 

/s/ CASEY GARTEN   
	 
 	 

By:	 
 	 

/s/ SAMUEL WAI   

	 

Title:	 
 	 

Vice President
	 
 	 

Title:	 
 	 

Treasurer

2

 

(to be placed on Company letterhead)  

  
      AMERICAN CRYSTAL SUGAR COMPANY
  COMPLIANCE CERTIFICATE         

    To induce CoBank to make and continue making advances to the Company and to comply with and demonstrate compliance with the terms, covenants, and conditions of
the Loan Agreement and all Supplements thereto, this financial statement is furnished to the Bank. The undersigned certifies that, (i) this statement was prepared from the books and records of
the Association, is in agreement with them, and is correct to the best of the undersigned's knowledge and belief, and (ii) no event has occurred which, with notice or lapse of time, or both,
might become an Event of Default under the Loan Agreement. 

	AMERICAN CRYSTAL SUGAR	 	 
	 

 Date	 
 	 

 (Name/Title)

1

[Form of Compliance Certificate] 

American Crystal Sugar Company
  Quarterly Compliance Certificate

Term and Seasonal Loans 

Net Working Capital:  

	 	a) Current Assets as measured in accordance with GAAP	 	$
	 	 	

	 	b) Current Liabilities as measured in accordance with GAAP	 	$
	 	 	

	 

Net Working Capital (a-b)	 
 	 

$
	 	 	

Long-Term Debt Coverage:  

	Net Funds
 
	 	Year 1
	 	Year 2
	 	Year 3
	 
	 	 

a)	 
 	 

Unit retains	 
 	 

÷	 
 	 

 	 
 	 
 	 

 	 
 
	 	 

b)	 
 	 

Depreciation and amortization	 
 	 

+	 
 	 

 	 
 	 
 	 

 	 
 
	 	 

c)	 
 	 

Net income from non-member business and member business tax timing differences	 
 	 

+	 
 	 

 	 
 	 
 	 

 	 
 
	 	 

d)	 
 	 

Decrease in investments in other cooperatives (excluding subsidiaries)	 
 	 

+	 
 	 

 	 
 	 
 	 

 	 
 
	 	 

e)	 
 	 

Net revenue from the sale of stock	 
 	 

+	 
 	 

 	 
 	 
 	 

 	 
 
	 	 

f)	 
 	 

Increase in investments in other cooperatives (excluding subsidiaries)	 
 	 

(     	 
)	 

(     	 
)	 
 	 

(     	 
)
	 	 

g)	 
 	 

Net loss from non-member business and member business tax timing differences	 
 	 

(     	 
)	 

(     	 
)	 
 	 

(     	 
)
	 	 

h)	 
 	 

Provision for income tax	 
 	 

(     	 
)	 

(     	 
)	 
 	 

(     	 
)
	 	 

i)	 
 	 

Members' investment retirements	 
 	 

(     	 
)	 

(     	 
)	 
 	 

(     	 
)
	 	 

 	 
 	 

Sum (a through i)	 
 	 

 	 
 	 

 	 
 	 
 	 

 	 
 
	 

 	 
 	 

 	 
 	 

	 
 
	 

 	 
 	 

 	 
 	 

Average Net Funds	 
 	 
$	 

j	 
 
	 

 	 
 	 

 	 
 	 

 	 
 	 

 	 
 	 

	 
 
	 

 	 
 	 

 	 
 	 

Long-term Debt	 
 	 
$	 

k	 
 
	 

 	 
 	 

 	 
 	 

 	 
 	 

 	 
 	 

	 
 
	 

 	 
 	 

 	 
 	 

Ratio (k / j)	 
 	 
 	 

:1	 
 
	 

 	 
 	 

 	 
 	 

 	 
 	 

 	 
 	 

	 
 
	 

 	 
 	 

 	 
 	 

 	 
 	 

 	 
 	 
 	 

 	 
 

1

Long-Term Debt to Capitalization:  

)
 

	 	a)	 	Long-term debt (excluding current maturities) as determined in accordance with GAAP	 	$
	 	 	 	 	

	 	 

b)	 
 	 

Total equity as measured in accordance with GAAP	 
 	 

$
	 

 	 
 	 

 	 
 	 

	 	 

c)	 
 	 

Capitalization (a ÷ b)	 
 	 

$
	 

 	 
 	 

 	 
 	 

	 	 

Long-Term Debt to Capitalization (a / c)	 
 	 

:1.0
	 

 	 
 	 

 	 
 	 

	 

 	 
 	 

 	 
 	 

 

Leverage Ratio (Term Pricing Only)  

)
 

	 	a)	 	Long-term Debt	 	$
	 	 	 	 	

	 	 

b)	 
 	 

Actual Less Minimum Net Working Capital	 
 	 

$
	 

 	 
 	 

 	 
 	 

	 	 

c)	 
 	 

Adjusted Long-term Debt (a - b)	 
 	 

$
	 

 	 
 	 

 	 
 	 

	 	 

d)	 
 	 

Total Member Investment	 
 	 

$
	 

 	 
 	 

 	 
 	 

	 	 

e)	 
 	 

Estimated Unit Retains	 
 	 

$
	 

 	 
 	 

 	 
 	 

	 	 

f)	 
 	 

Adjusted Members Investment (d + e)	 
 	 

$
	 

 	 
 	 

 	 
 	 

	 	 

g)	 
 	 

Adjusted Leverage Ratio (c / f)	 
 	 

:1.0
	 

 	 
 	 

 	 
 	 

	 

 	 
 	 

 	 
 	 

 

Pricing Grid (Term Only)  

	A. › 1.35:1	 	 	 	B. 1.20:1	 	 	 	C. ‹ 1.20:1	 	 	 	D. ‹ 1.0:1	 	 
	 	 	
	 	 	 	
	 	 	 	
	 	 	 	

2

QuickLinks

MASTER LOAN AGREEMENT

BACKGROUND

STATUSED REVOLVING CREDIT SUPPLEMENT

REVOLVING TERM LOAN SUPPLEMENT

REVOLVING TERM LOAN SUPPLEMENT

LIBOR MARGINS

TREASURY MARGINS

REVOLVING TERM LOAN SUPPLEMENT

LIBOR MARGINS

TREASURY MARGINS

SINGLE ADVANCE TERM LOAN SUPPLEMENT

LETTER OF CREDIT COMMITMENT SUPPLEMENT.

AMERICAN CRYSTAL SUGAR COMPANY COMPLIANCE CERTIFICATE

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00011-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00011-of-00352.parquet"}]]