Master Loan Agreement dated February 28, 2003



 Exhibit 10.31 
  
 MLA No. E577 
  
 MASTER LOAN AGREEMENT 
  
 THIS MASTER LOAN AGREEMENT is entered into as of February 28, 2003 between CoBANK, ACB (“CoBank”) and FCStone Financial, Inc. (the
“Company”). 
  
 BACKGROUND 
  
 From time to time CoBank may make loans to the Company, and in consideration
of CoBank making one or more loans to the Company, CoBank and the Company agree as follows: 
  
 SECTION 1. Supplements. In the event the Company desires to borrow from CoBank and CoBank is willing to lend to the Company, or in the event CoBank and the Company desire to consolidate any
existing loans hereunder, the parties will enter into a Supplement to this agreement (a “Supplement”). 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 agreement, in the Supplement relating to the loan and in any other
agreements, including any security agreements, or documents entered into in connection with any loan or Supplement. 
  
 SECTION 2. Availability. Subject to any limitations set forth in any Supplement, 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 rate or rates applicable to each
loan, 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, by check, or by automated clearing house or other similar cash handling processes as specified by separate agreement between the Company and CoBank. 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 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 

  










 Master Loan Agreement E577 
 FCStone Financial, Inc. 
 West Des Moines, Iowa 
  

 
(or to such other place as CoBank may direct by notice). Credit for payment by check will not be given until the later 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, and by such other security as may be described in any Supplement or any security, pledge or assignment agreement entered into in order to secure the Company’s obligations to CoBank. 
  
 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. An opinion of counsel to the Company (which counsel must be acceptable to CoBank) opining as to the validity and enforceability of the Loan Documents (as defined below) and to the perfection of any security interests.

  
 (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) 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. 
  

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 Master Loan Agreement E577 
 FCStone Financial, Inc. 
 West Des Moines, Iowa 
  

 (iii) Fees and Other Charges. All fees and other charges provided for
herein or in the Supplement. 
  
 (iv)
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. 
  
 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 and, to the extent
contemplated hereunder, each “Subsidiary” (as defined below) is in compliance with all of the terms of this agreement, and no Event of Default or Potential Default exists hereunder. 
  
 (ii) Subsidiaries. The Company has no
subsidiaries. For purposes hereof, a “Subsidiary” shall mean a corporation of which shares of stock having ordinary voting power to elect a majority of the board of directors or other managers of such corporation are owned, directly or
indirectly, by the Company. 
  
 (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. 
  

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 Master Loan Agreement E577 
 FCStone Financial, Inc. 
 West Des Moines, Iowa 
  

 (iii) Compliance. The Company and, to the extent contemplated
hereunder, each Subsidiary, 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 that 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, and to cause each Subsidiary 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. 
  

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 Master Loan Agreement E577 
 FCStone Financial, Inc. 
 West Des Moines, Iowa 
  

 (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. 
  
 (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 consolidated and consolidating financial statements of the Company and its consolidated Subsidiaries, if any,
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 45 days after the end of each fiscal quarter of the Company, a consolidated balance sheet of the Company and its consolidated Subsidiaries, if any, as of the
end of such fiscal quarter, a consolidated statement of income for the Company and its consolidated Subsidiaries, if any, 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 and certified by an authorized officer or employee of the Company acceptable to CoBank. 
  
 (iii) Notice of Default. Promptly after becoming aware thereof, notice of the occurrence of an
Event of Default or a Potential Default. 
  
 (iv) 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 or any Subsidiary which, if determined adversely to the Company or any such Subsidiary, could have a material adverse effect on the financial condition, properties, profits, or
operations of the Company or any such Subsidiary. 
  
 (v) Notice of Environmental Litigation, Etc. Promptly after receipt thereof, notice of the receipt of all pleadings, orders, complaints, 

  

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 Master Loan Agreement E577 
 FCStone Financial, Inc. 
 West Des Moines, Iowa 
  

 
indictments, or any other communication alleging a condition that may require the Company or any Subsidiary 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. 
  
 (vi)
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. 
  
 (vii) Other Information. Such other
information regarding the condition or operations, financial or otherwise, of the Company or any Subsidiary 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)(iv) and (v) above. 
  
 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, (iv) obligations related to the financing of specific grain sale/repurchase transactions not financed by
CoBank, and (v) existing railcar leases. 
  
 (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; (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; (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 encumbered thereby in the normal course of its business or materially impair the value of the property subject
thereto, and (vii) warehouse receipts or security interests (provided such security interests do not conflict with or are subordinate to CoBank’s) related to the financing of specific grain sale/repurchase transactions not financed by CoBank.

  

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 Master Loan Agreement E577 
 FCStone Financial, Inc. 
 West Des Moines, Iowa 
  

 (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. 
  
 (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. 
  
 (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) Equity. The Company will maintain equity in excess of
$750,000.00. 
  
 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. 
  
 (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 or, to the extent required hereunder, any Subsidiary should fail to perform or comply with Sections 8(A) through 8(H)(ii), 8(H)(vi), 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 or, to the extent required hereunder, any Subsidiary should fail to perform or comply with any other covenant or 

  

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 Master Loan Agreement E577 
 FCStone Financial, Inc. 
 West Des Moines, Iowa 
  

 
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 or any Subsidiary should fail to pay when due any indebtedness to any other person or entity for
borrowed money or any 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 or any Subsidiary and either: (i) enforcement proceedings shall have been commenced; (ii) a Lien prohibited under Section 9(B) hereof shall have been obtained; or (iii) such
judgment, decree, or order shall continue unsatisfied and in effect for a period of 20 consecutive days without being vacated, discharged, satisfied, or stayed pending appeal. 
  
 (H) Insolvency, Etc. The Company or any Subsidiary 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. 
  
 (J) Guarantees. Any guarantee, suretyship, subordination agreement, maintenance agreement, or other agreement
furnished in connection with the Company’s obligations hereunder and under any Supplement (including the Guarantee of Payment of FCStone Group, Inc.) shall, at any time, cease to be in full force and effect, or shall be revoked or declared null
and void, or the validity or enforceability thereof shall be contested by the guarantor, surety or other maker thereof (the “Guarantor”), or the Guarantor shall deny any further liability or obligation thereunder, or shall fail to perform
its obligations thereunder, or any representation or warranty set forth therein shall be breached, or the Guarantor shall breach or be in default under the terms of any other agreement with CoBank (including any loan agreement or 

  

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 Master Loan Agreement E577 
 FCStone Financial, Inc. 
 West Des Moines, Iowa 
  

 
security agreement), or a default set forth in Subsections (F) through (H) hereof shall occur with respect to the Guarantor. 
  
 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. For all purposes hereof, the term “Potential
Default” means the occurrence of any event which, with the passage of time or the giving of notice or both would become an Event of Default. 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 

  

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 Master Loan Agreement E577 
 FCStone Financial, Inc. 
 West Des Moines, Iowa 
  

 
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 the effect of which constitutes a refinancing of the loan, 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). 
  
 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 three 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:
		
	 For general correspondence purposes:
 P.O. Box 5110
 Denver, Colorado 80217-5110
	 	 FCStone Financial, Inc.
 2829 Westown Parkway, Suite
200
 West Des Moines, Iowa 50266-1333
 Attention: Dick
Lindgren

		
	 For direct delivery purposes, when desired:
 5500 South Quebec Street
 Greenwood Village, Colorado 80111-1914
	 	Fax No: (515) 327-5213
		
	 Attention: Credit information Services
 Fax No.: 303-22406101
	 	Copy to: David A. Bolte, same address

  

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 Master Loan Agreement E577 
 FCStone Financial, Inc. 
 West Des Moines, Iowa 
  

 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 and any participants from 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,
Etc. From time to time, CoBank may sell to one or more banks, financial institutions or other lenders a participation in one or more of the loans or other extensions of credit made 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 and its Subsidiaries to any participant or prospective participant, provided
that such participant or prospective participant agrees to keep such information confidential. CoBank agrees that all Loans that are made by CoBank and that are retained for its own account and are not included in a sale of participation interest
shall be entitled to patronage distributions in accordance with the bylaws of CoBank and its practices and procedures related to patronage distribution. Accordingly, all Loans that are included in a sale of participation interest shall not be
entitled to patronage distributions. A sale of participation interest may include certain voting rights of the participants regarding the loans hereunder (including without limitation the administration, servicing and enforcement thereof). CoBank
agrees to give written notification to the Company of any sale of participation interests. 
  

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 Master Loan Agreement E577 
 FCStone Financial, Inc. 
 West Des Moines, Iowa 
  

 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	 	 	 	FCSTONE FINANCIAL, INC.
					
	 By:
	 	 /s/ Teresa L. Fountain
	 	 	 	 By:
	 	 /s/ Paul G. Anderson

	 Title:
	 	 Assistant Corporate Secretary
	 	 	 	 Title:
	 	 President/CEO


  

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