Document:

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                  ALLSTATE LIFE INSURANCE COMPANY

                        ALLSTATE PLAZA WEST G5C

                            3075 SANDERS ROAD

                        NORTHBROOK, ILLLNOIS 60062

September ____, 2000

Ag-Chem Equipment Co., Inc.
5720 Smetana Drive
Minnetonka, MN 55343-9688

         Re:   Allstate Loan No. 121873
               Brenwood I, II, III & IV
               5720, 5700, 5640, 5620 Smetana Drive (the "Property")
               Minnetonka, MN 55343-9688

Gentlemen:

         Reference is made to our Commitment dated July 20, 2000 (the
"Commitment") with respect to a $9,000,000.00 Loan (the "Loan") to be secured by
a first Mortgage, Assignment of Leases, Rents and Contracts, Security Agreement
and Fixture Filing (the "Mortgage") encumbering the Property. Any capitalized
terms not otherwise defined in this letter agreement (the "Letter Agreement")
shall have the same meaning as contained in the Mortgage.

         In consideration of your execution and delivery of the documents
evidencing, securing or otherwise pertaining to the Loan (the "Allstate Loan
Documents"), you (the "Borrower") and we ("Allstate") hereby agree as follows:

         1. Related Agreement. This Letter Agreement shall constitute a Related
Agreement.

         2. Impounds. With regard to the provisions contained in Section 1.06 of
the Mortgage requiring Borrower to deposit 1/12 of the annual amounts of real
estate taxes, regular and special assessments and insurance premiums, Allstate
hereby agrees to defer collection of such monthly deposits for so long as (a)
Borrower is the sole fee simple owner of the Property; (b) no Event of Default
exists under the Allstate Loan Documents and no condition or event exists which
with notice, the passage of time, or both, would constitute an Event of Default;
and (c) at Allstate's election, Borrower either pays for a tax reporting service
or Borrower promptly and consistently furnishes evidence that taxes and
insurance premiums are being currently paid.

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         3. Earthquake Insurance. With regard to the provisions contained in
Section 1.02 of the Mortgage requiring Borrower obtain earthquake insurance
coverage on the Property, Allstate hereby agrees to waive such requirement until
such time as such coverage is available at commercially reasonable rates and in
Allstate's reasonable opinion such coverage is generally required by other
institutional lenders.

         4. Right to Change Ownership Interests in Borrower. (a) Notwithstanding
the 12 provisions contained in Section 1.08 of the Mortgage, Borrower shall have
a one time right, provided there is no default or an event which, with notice or
the passage of time, or both, could result in a default by Borrower under the
Allstate Loan Documents, to assign, sell or transfer all of the Property (the
"Permitted Transfer") to a party with experience, satisfactory to Allstate, in
managing property similar to the Property and whose financial condition is
satisfactory to Allstate ("Permitted Transferee"). The Permitted Transfer shall
be further conditioned upon: (i) the payment by Borrower to Allstate of a
transfer fee equal to 1% of the outstanding principal balance of the Note; (ii)
the reimbursement of all of Allstate's expenses, including legal fees, incurred
in connection with the Permitted Transfer; (iii) the Permitted Transferee and
such general partners or principals of Permitted Transferee as Allstate may
request, assuming, in form and substance satisfactory to Allstate, all
obligations of Borrower under the Allstate Loan Documents, including, without
limitation, the Environmental Indemnity Agreement and the Recourse Indemnity
Agreement, with the same degree of recourse liability as Borrower and subject to
the same exculpatory provisions; (iv) Allstate's receipt of a title policy
complying with the requirements of the Commitment, updated to the date of the
Permitted Transfer, evidencing that such Permitted Transfer will not adversely
affect Allstate's first and prior lien on the Property or any other rights or
interests granted to Allstate under the Allstate Loan Documents; (v) Allstate's
receipt of opinions of counsel acceptable to Allstate that all previous opinions
pertaining to Borrower are true with respect to the Permitted Transferee and the
Permitted Transferee has duly assumed the Allstate Loan Documents, and same are
valid and enforceable against Permitted Transferee and the Property; and that
Borrower has the requisite power and authority to properly transfer the
Property; (vi) the Property having maintained a Debt Coverage Ratio of not less
than 175% for the 12-month period ending 30 days before the date of the
Permitted Transfer and the Property having a projected Debt Coverage Ratio for
the next 12 months based on the most recently approved and certified financial
statements and annual rent roll of not less than 175%; (vii) the Pernuitted
Transferee paying to Borrower at least a 50% cash down payment on the date of
the Permitted Transfer; (viii) Allstate's receipt and approval of the purchase
and sale contract and copies of the proposed transfer documentation; (ix)
Allstate's receipt and approval of the Permitted Transferee's resume and
financial statements; and (x) Allstate's receipt and approval of an updated MAI
appraisal by an appraiser satisfactory to Allstate (prepared at Borrower's
expense) specifically confirming a loan to value ratio of no more than 50%.

         Net Operating Income shall be certified to be true and correct by the
managing general partner, manager, or chief financial officer of Borrower.

         (b) Notwithstanding the provisions contained in Section 1.08 of the
Mortgage, Borrower shall have a one-time right, provided there is no default or
an event which, with

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notice or the passage of time, or both, could result in a default by Borrower
under the Allstate Loan Documents, to assign, sell or transfer all of the
Property (the "Permitted Affiliated Transfer") to a special purpose entity
controlled by Alvin E. McQuinn and at least 51% owned by Alvin E. McQuinn and/or
the immediate family member of Alvin E. McQuinn including lineal descendants and
officers or employees of the Borrower and said entity shall be organized for the
purpose of owning and operating the Property ("Permitted Affiliated
Transferee"). The Permitted Affiliated Transfer shall be further conditioned
upon: (i) the payment by Borrower to Allstate of a $1,500 transfer fee; (ii) the
reimbursement of all of Allstate's expenses, including legal fees, incurred in
connection with the Permitted Affiliated Transfer; (iii) the Permitted
Affiliated Transferee and its general partners or managing members assuming, in
form and substance satisfactory to Allstate, all obligations of Borrower under
the Allstate Loan Documents, including, without limitation, the Environmental
Indemnity Agreement and Recourse Indemnity Agreement, with the same degree of
recourse liability as Borrower and subject to the same exculpatory provisions;
(iv) Allstate's receipt of a title policy complying with requirements of the
Commitment, updated to the date of the Permitted Affiliated Transfer, evidencing
that such Permitted Affiliated Transfer will not adversely affect Allstate's
first and prior lien on the Property or any other rights or interests granted to
Allstate under the Allstate Loan Documents; and (v) Allstate's receipt of
opinions of counsel acceptable to Allstate that all previous opinions pertaining
to Borrower are true with respect to the Permitted Affiliated Transferee and the
Permitted Affiliated Transferee has duly assumed the Allstate Loan Documents,
and same are valid and enforceable against Permitted Affiliated Transferee and
the Property and that Borrower has the requisite power and authority to properly
transfer the Property.

         5. Rights Personal to Borrower. The rights granted to Borrower in this
Letter Agreement shall be personal to Borrower and shall not inure to the
benefit of any subsequent owner of the Property. In the event Allstate transfers
all or any part of the Loan or any interest in the Allstate Loan Documents to
any other person or entity, Allstate agrees to notify such transferee(s) of the
existence of this Letter Agreement and the fact that it is binding upon
Allstate's successors and assigns by delivering such transferee(s) a true,
correct and complete copy of this Letter Agreement concurrently with such
transfer accompanied by a letter of transmittal from Allstate advising such
transferee(s) of the binding nature of the provisions of this Letter Agreement.
Allstate will send a copy of its letter of transmittal and the enclosure to
Borrower, and Borrower's name will be shown on the face of the original letter
of transmittal as an addressee thereof.

                                                 Very truly yours,

                                                 ALLSTATE LIFE INSURANCE COMPANY

                                                 By:
                                                      --------------------------

                                                 By:
                                                      --------------------------
                                                 Its  Authorized Signatories

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Accepted and agreed:

AG-CHEM EQUIPMENT CO., INC.

By:  /s/ John C. Retherford
     -------------------------------
     John C. Retherford
Its: Senior Vice President and Chief Financial Officer

Date: September ___, 2000

                                       4AMMENDMENT NO. 3

                          TO

              THIRD AMENDED AND RESTATED

           LONG TERM REVOLVING CREDIT AGREEMENT

         This WAIVER AND AMENDMENT NO. 3 to "CREDIT AGREEMENT" (as defined
below), dated as of September 1, 2000 (the "Amendment"), is entered into by and
among Ag-Chem Equipment Co., Inc. (the "Borrower"), Ag-Chem Europe, B.V.
("Ag-Chem Europe"), Ag-Chem Equipment Canada, Ltd. ("Ag-Chem Canada", and
together with Ag-Chem Europe, the "Multicurrency Subsidiary Borrowers"), the
institutions from time to time party to the Credit Agreement as lenders (the
"Lenders"), and Bank One, NA, as the Agent under the Credit Agreement.
Capitalized terms used herein and not otherwise defined herein shall have the
meaning given to them in the Credit Agreement.

                  WITNESSETH

         WHEREAS, the Borrower, the Multicurrency Subsidiary Borrowers, the
Lenders and the Agent are parties to a Third Amended and Restated Long Term
Revolving Credit Agreement, dated as of June 4, 1999 (as amended, the "Credit
Agreement");

         WHEREAS, the Borrower and the Multicurrency Subsidiary Borrowers wish
to amend the Credit Agreement in certain respects-,

         WHEREAS, the Lenders and the Agent are willing to amend the Credit
Agreement on the terms and conditions set forth herein;

         NOW, THEREFORE, in consideration of the premises set forth above, the
terms and conditions contained herein, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
Borrower, the Multicurrency Subsidiary Borrowers, the Agent and the Lenders
hereby agree as follows:

      1. Amendment. Effective as of the date first above written and subject to
the satisfaction of the conditions precedent set forth in Section 2 below, the
Credit Agreement shall be and hereby is amended as follows:

         (a) The definition of "Commitment" set forth in Section 1.1 of the
Credit Agreement is hereby amended to insert at the end thereof the following:
"From and after September 1, 2000, Bank One Canada shall have no commitment to
extend any Advance hereunder."

         (b) The definition of "Tranche B Commitment" set forth in Section 1.1
of the Credit Agreement is hereby amended in its entirety as follows: "Tranche B
Commitment" means the CDN Dollar Equivalent Amount of US$0.00."

<PAGE>

         (c) Section 2. 1 (b) of the Credit Agreement is hereby amended to
insert at the end thereof the following: "From and after September 1, 2000,
neither the Company nor any Multicurrency Subsidiary Borrower shall request and
the Canadian Lender shall not extend any Canadian Advance. All outstanding
Canadian Advances, together with accrued and unpaid interest thereon and fees
related thereto, if any, shall be repaid in full on September 1, 2000."

         (d) Section 2. 1 (e) of the Credit Agreement is hereby amended to
insert at the end thereof the following: "No Facility Fee shall accrue on the
Tranche B Commitment from and after September 1, 2000."

         (e) Section 2.2(b) of the Credit Agreement is hereby amended to insert
at the end thereof the following: "No Canadian Advance shall be requested or
extended from and after September 1, 2000."

         (f) Bank One Canada's signature page to the Credit Agreement is hereby
amended to delete therefrom the number "5,000,000" and to substitute therefor
the number "0".

      2. Conditions of Effectiveness. This Amendment shall become effective and
be deemed effective as of the date hereof, if, and only if, the Agent shall have
received (i) five (5) duly executed originals of this Amendment from the
Borrower, the Multicurrency Subsidiary Borrowers and the Required Lenders, and
(ii) evidence satisfactory to it that all outstanding Canadian Advances, if any,
together with accrued interest and Facility Fees thereon, have been paid in
full.

      3. Representations and Warranties of the Borrower and the Multicurrency
Subsidiary Borrowers. Each of the Borrower and each Multicurrency Subsidiary
Borrower hereby represents and warrants as follows:

         (a) The Credit Agreement as previously executed constitutes the legal,
valid and binding obligation of the Borrower and each Multicurrency Subsidiary
Borrower and is enforceable against the Borrower and each Multicurrency
Subsidiary Borrower in accordance with its terms.

         (b) Upon the effectiveness of this Amendment, each of the Borrower and
each Multicurrency Subsidiary Borrower hereby (i) represents that no Default or
Event of Default exists under the terms of the Credit Agreement, (ii) reaffirms
all covenants, representations and warranties made in the Credit Agreement to
which it is a party, and (iii) agrees that all such covenants, representations
and warranties shall be deemed to have been remade as of the effective date of
this Amendment.

       4. Effect on the Credit Ageement.

         (a) Upon the effectiveness of this Amendment, on and after the date
hereof, each reference in the Credit Agreement to "this Agreement," "hereunder,"
"hereof," "herein" or words of like import shall mean and be a reference to the
Credit Agreement, as amended hereby.

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<PAGE>

         (b) Except as specifically amended above, the Credit Agreement and all
other documents, instruments and agreements executed and/or delivered in
connection therewith shall remain in full force and effect, and are hereby
ratified and confirmed.

         (c) The execution, delivery and effectiveness of this Amendment shall
neither, except as expressly provided herein, operate as a waiver of any right,
power or remedy of the Lenders or the Agent, nor constitute a waiver of any
provision of the Credit Agreement or any other documents, instruments and
agreements executed and/or delivered in connection therewith.

      5. Costs and Expenses. The Borrower agrees to pay all reasonable costs,
fees and out-of-pocket expenses (including attorneys' fees and expenses charged
to the Agent) incurred by the Agent and the Lenders in connection with the
preparation, arrangement, execution and enforcement of this Amendment.

      6. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE INTERNAL LAWS (INCLUDING, WITHOUT LIMITATION, SECTION 735
ELCS 105/5-1 ET SEQ. BUT OTHERWISE WITHOUT REGARD TO THE CONFLICTS OF LAWS
PROVISIONS) OF THE STATE OF ILLINOIS.

      7. Headings. Section headings in this Amendment are included herein for
convenience of reference only and shall not constitute a part of this Amendment
for any other purpose.

      8. Counterparts. This Amendment may be executed by one or more of the
parties to the Amendment on any number of separate counterparts and all of said
counterparts taken together shall be deemed to constitute one and the same
instrument.

      9. No Strict Construction. The parties hereto have participated jointly in
the negotiation and drafting of this Amendment. In the event an ambiguity or
question of intent or interpretation arises, this Amendment shall be construed
as if drafted jointly by the parties hereto and no presumption or burden of
proof shall arise favoring or disfavoring any party by virtue of the authorship
of any provisions of this Amendment.

                    The remainder of this page is intentionally blank.

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<PAGE>

         IN WITNESS WHEREOF, this Amendment No. 3 has been duly executed as of
the day and year first above written.

AG-CHEM EQUIPMENT CO., INC., as the     AG-CHEM EUROPE, B.V., as a Multicurrency
Borrower                                Subsidiary Borrower

By:    /s/ John C. Retherford           By:    /s/ John C. Retherford
       ----------------------------            ----------------------------
Name:  John C. Retherford               Name:  John C. Retherford
Title: Senior Vice President            Title: Supervisory Director

AG-CHEM EQUIPMENT CANADA, LTD., as      BANK ONE, NA, as a Lender and as Agent
a Multicurrency Subsidiary Borrower     under the Credit Agreement

By:    /s/ John C. Retherford           By:    /s/ Jenny Gilpin
       ----------------------------            ----------------------------
Name   John C. Retherford               Name:  Jenny A. Gilpin
Title: Vice President                   Title: First Vice President

COOPERATIEVE CENTRALE RAIFFEISEN-       HARRIS TRUST AND SAVINGS BANK, as a
BOERENLEENBANK B.A., "RABOBANK          Lender under the Credit Agreement
INTERNATIONAL", NEW YORK BRANCH,
as a Lender under the Credit            By:    /s/ Andrew T. Claar
Agreement                                      ----------------------------
                                        Name:  Andrew T. Claar
By:    (illegible signature)            Title: Vice President
       ----------------------------
Name
Title: Senior Credit Officer and
       Senior Vice President

By:    /s/ David W. Nelson
       ----------------------------
Name:  David W. Nelson
Title: Executive Director

BANK ONE CANADA, formerly known
as First Chicago NBD Bank, Canada,
as a Lender under the Credit
Agreement

By:    /s/ Randall Taylor
       ----------------------------
Name:  Randall Taylor
Title: SVP

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

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